Consolidate Retirement Savings With an IRA

Do you or your spouse have traditional IRAs with more than one financial institution? Or, do you have retirement savings in more than one employer plan, such as 401(k)s, 401(a)s from institutions or private firms you worked for, 457(b)s from public employers, and
403(b)s from teaching positions?

Generally, assets from any qualified retirement plan can be combined into one IRA.¹ However, please keep in mind that there may be tax consequences associated with transfer of assets. Non-direct transfers may be subject to surrender charges, taxation and penalties. Consult your own tax advisor for your particular situation.

The chief advantages of consolidating with one company are:

Simplified recordkeeping — you receive only one statement.
Easy review of your investment strategy — you can see your asset allocation and total accumulation at a glance.
A single source of income at retirement — you don't need to manage accounts and income from multiple sources.

In choosing a financial services firm, look for one with these important features:

Broad opportunities to diversify over an array of asset classes, such as guaranteed, equity, bond, real estate, and money market. Keep in mind that diversification does not guarantee against losses.
Many ways to receive retirement income. Examples - lump-sum and periodic payments, systematic withdrawals, minimum distributions, and lifetime annuity income.
A strong record of controlling expenses.
A long history of helping people save for retirement.

When you consolidate with an IRA, your money continues to grow tax deferred until you make withdrawals.² Some financial companies impose high transaction fees or surrender charges when you transfer assets, so be sure to find out before authorizing a transfer.

Roth IRAs hold money that has already been taxed; therefore, Roth money should be consolidated separately from your tax-deferred plan assets.
Withdrawals made prior to age 59½ are subject to ordinary income tax and an additional 10% early withdrawal penalty may apply. Please consult your own advisor.

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