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The marker is overstocked with different types of accounts, and some of the top ones include 401(k), IRA, 457 plan, Roth IRA, and Pension plan, among others. All these operate differently and have their benefits and drawbacks.

Those who have been saving for years will tell you how they operate different retirement accounts. This happens especially for people who have had different jobs and retirement plans. However, it sounds easier than done, but operating multiple retirement savings account can be a complex affair.

How about if you choose to consolidate them?

Retirement means having structured investments and in a way that they will continuously bring in steady income. The last thing a retiree wants is to move from one bank to another to withdraw money. Thus read below some significant advantages of merging your retirement savings plans: –

Reduced fees

Some accounts such as IRA charge an annual fee for custodians who prepare reports for contributions and withdrawals. The reports are for tax purposes. Meaning, the more the accounts, the higher the fee.

Easier management for beneficiaries

Consolidated retirement plans will be easy to manage once you die. Your beneficiaries will not have to run up and down, tracking down accounts and documents.

Less hassle in dealing with the paperwork for contribution

Multiple accounts are a hassle to manage, especially after the age of 70 years, where you are required to use a certain formula with your contributions. The chances of missing the contribution deadlines are also high.

Free up your time

You will not need to explore a mountain of spreadsheets, and neither will you need to require multiple passwords and email addresses to different accounts. The fewer the accounts, the less time you spend, and the more free time you will have for other things – perhaps a hobby. Additionally, combined accounts are more secure, especially if you engage a well-established custodian.

Nonetheless, despite all the advantages of combining your retirement accounts, sometimes having them in multiples is a plus. This happens in the case whereby you want to access the best investment options. All in all, whatever is your option, you’re better off working with a financial advisor.