Consolidating IRA accounts means rolling multiple retirement accounts into one. For some people, this step can simplify their finances and reduce complexity both now and down the road. But is it the right move for you? Let’s explore some of the key reasons why consolidation might make sense and what we will consider here at Iron Plan Solutions before recommending that you make any changes when it comes to consolidating IRA accounts as part of your retirement plan.
Consolidating IRA accounts can make it easier to manage your finances in retirement, without needing to coordinate between multiple financial institutions. You may even find that you reduce your overall management fees and costs, which over time can really add up. However, you need to tread carefully and make sure you’re rolling funds correctly based on your goals. You may want to consolidate into similar account types to avoid unintended tax consequences or unintended penalties, or carefully plan to roll over some money into Roth accounts and pay taxes early mitigate taxes in retirement, and down the line for your heirs.
