One reason: You will have to take minimum distributions on tax-deferred accounts when your reach age 70½. In Eric's case, although he has two IRA annuities, he cannot combine his IRA annuity with his nonqualified annuity, because the nonqualified annuity was funded with after-tax dollars and cannot be commingled with IRA money that was funded with deductible contributions.

He will also leave his traditional IRA with the zero balance open because he uses that to fund a backdoor Roth IRA conversion strategy that allows him to make a nondeductible contribution to that account and then convert it to the Roth IRA he holds with his broker.

consolidating retirement accounts-20

In most cases, investors are best served by consolidating old 401(k) accounts into a single IRA rollover account. We recently helped a new client sort through the administrative maze required to consolidate old 401(k) accounts into a single IRA rollover.

It is not a difficult process but if you are not an investment advisor who is armed with the right questions and knows which forms are needed, it can be a bit daunting and frustrating.

Moving accounts requires calling 401(k) providers -- navigating complex phone trees, waiting on hold, and talking to customer service reps who give you different answers to the same question each time you call their 800 number.

In my opinion, the short-term pain is worth the potential long-term gains.

Unfortunately, with lack of time and training, many Americans have neglected their retirement accounts.

So what's the first step in taking control of your financial future?

Eric could simplify his record keeping by combining some of his accounts.

He could move the ,500 and ,500 Roth IRA CDs at his bank into the Roth IRA with his broker.

His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him

So what's the first step in taking control of your financial future?Eric could simplify his record keeping by combining some of his accounts.He could move the $4,500 and $2,500 Roth IRA CDs at his bank into the Roth IRA with his broker.His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him $1,000 a month for life during retirement.His assets are listed as follows: – $75,000 Roth 410(k) at his current employer; – $3,500 traditional IRA at discount broker; – $4,500 Roth IRA CD at his bank; – $2,500 Roth IRA CD at his bank; – $12,400 IRA indexed annuity rollover at discount broker; – $0 balance traditional IRA; – $30,000 Roth IRA at full-service broker; – $50,000 nonqualified variable annuity; – $15,000 money market with full-service broker; and – $40,000 in stocks and bonds with full-service broker.In many cases, the answer is no, but there are a few things to consider such as the tax status of the investments you may own.

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So what's the first step in taking control of your financial future?

Eric could simplify his record keeping by combining some of his accounts.

He could move the $4,500 and $2,500 Roth IRA CDs at his bank into the Roth IRA with his broker.

His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him $1,000 a month for life during retirement.

His assets are listed as follows: – $75,000 Roth 410(k) at his current employer; – $3,500 traditional IRA at discount broker; – $4,500 Roth IRA CD at his bank; – $2,500 Roth IRA CD at his bank; – $12,400 IRA indexed annuity rollover at discount broker; – $0 balance traditional IRA; – $30,000 Roth IRA at full-service broker; – $50,000 nonqualified variable annuity; – $15,000 money market with full-service broker; and – $40,000 in stocks and bonds with full-service broker.

In many cases, the answer is no, but there are a few things to consider such as the tax status of the investments you may own.

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So what's the first step in taking control of your financial future?

Eric could simplify his record keeping by combining some of his accounts.

He could move the $4,500 and $2,500 Roth IRA CDs at his bank into the Roth IRA with his broker.

His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him $1,000 a month for life during retirement.

,000 a month for life during retirement.

His assets are listed as follows: – ,000 Roth 410(k) at his current employer; – ,500 traditional IRA at discount broker; – ,500 Roth IRA CD at his bank; – ,500 Roth IRA CD at his bank; – ,400 IRA indexed annuity rollover at discount broker; –

So what's the first step in taking control of your financial future?

Eric could simplify his record keeping by combining some of his accounts.

He could move the ,500 and ,500 Roth IRA CDs at his bank into the Roth IRA with his broker.

His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him

So what's the first step in taking control of your financial future?Eric could simplify his record keeping by combining some of his accounts.He could move the $4,500 and $2,500 Roth IRA CDs at his bank into the Roth IRA with his broker.His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him $1,000 a month for life during retirement.His assets are listed as follows: – $75,000 Roth 410(k) at his current employer; – $3,500 traditional IRA at discount broker; – $4,500 Roth IRA CD at his bank; – $2,500 Roth IRA CD at his bank; – $12,400 IRA indexed annuity rollover at discount broker; – $0 balance traditional IRA; – $30,000 Roth IRA at full-service broker; – $50,000 nonqualified variable annuity; – $15,000 money market with full-service broker; and – $40,000 in stocks and bonds with full-service broker.In many cases, the answer is no, but there are a few things to consider such as the tax status of the investments you may own.

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So what's the first step in taking control of your financial future?

Eric could simplify his record keeping by combining some of his accounts.

He could move the $4,500 and $2,500 Roth IRA CDs at his bank into the Roth IRA with his broker.

His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him $1,000 a month for life during retirement.

His assets are listed as follows: – $75,000 Roth 410(k) at his current employer; – $3,500 traditional IRA at discount broker; – $4,500 Roth IRA CD at his bank; – $2,500 Roth IRA CD at his bank; – $12,400 IRA indexed annuity rollover at discount broker; – $0 balance traditional IRA; – $30,000 Roth IRA at full-service broker; – $50,000 nonqualified variable annuity; – $15,000 money market with full-service broker; and – $40,000 in stocks and bonds with full-service broker.

In many cases, the answer is no, but there are a few things to consider such as the tax status of the investments you may own.

||

So what's the first step in taking control of your financial future?

Eric could simplify his record keeping by combining some of his accounts.

He could move the $4,500 and $2,500 Roth IRA CDs at his bank into the Roth IRA with his broker.

His employer also contributes to a nonqualified deferred compensation plan that is funded with an indexed universal life plan and will pay him $1,000 a month for life during retirement.

,000 a month for life during retirement.

balance traditional IRA; – ,000 Roth IRA at full-service broker; – ,000 nonqualified variable annuity; – ,000 money market with full-service broker; and – ,000 in stocks and bonds with full-service broker.

In many cases, the answer is no, but there are a few things to consider such as the tax status of the investments you may own.