The eRollover Blog

How to Consolidate Different Retirement Plans

What is Needed to Combine Different Retirement Plans?

Chances are you’ll establish a variety of different retirement accounts over the course of your career. Rather than maintain these separate accounts, you can in many cases consolidate, or combine, your various retirement plan accounts into one account.

Why Consolidate Your Retirement Plans?

Consolidating plans can help you with: • Paperwork and convenience: Maintaining one account with one firm means you’ll get only one statement every month and one annual statement at the end of each year. Also, with just one account, you’ll deal with only one firm for customer service issues. • Investment management: It’s much easier to maintain your desired asset allocation within one account rather than across various accounts. • Annual fees: Consolidating your various accounts into one account can reduce or eliminate annual maintenance fees.

Which Plans Can Be Consolidated?

The table below indicates which types of retirement plans can be consolidated into which other types. Note that not all types can be consolidated: for instance, you can consolidate a Roth IRA into another Roth IRA, or into a Roth 401(k), Roth 457(b), or Roth 403(b), but not into a Traditional IRA. Regardless of which type of consolidation you’d like to do, it’s a good idea to consult a tax advisor and/or a financial planner for guidance.

A(n) . . .

 

Can be consolidated into a(n) . . .

Traditional IRA

 

·                             Traditional IRA

·                             Roth IRA *

·                             SEP IRA

·                             401(k), 457(b),                                     403(b)

·                             Roth 401(k), 457(b),                               403(b) *

Roth IRA

 

·                             Roth IRA

·                             Roth 401(k), 457(b),                               403(b)

SIMPLE IRA

 

·                             Rollover IRA †

·                             SIMPLE IRA

·                             Roth IRA *†

·                             SEP IRA †

·                             401(k), 457(b),                                     403(b)

·                             Roth 401(k), 457(b),                               403(b) *†

SEP IRA

 

·                             Rollover IRA

·                             Roth IRA *

·                             SEP IRA

·                             401(k), 457(b),                                     403(b)

·                             Roth 401(k), 457(b),                               403(b) *

401(k), 403(b), or 457(b)

 

·                             Rollover IRA

·                             Roth IRA *

·                             SEP IRA

·                             401(k), 457(b)                                       403(b)

·                             Roth 401(k), 457(b),                               403(b) *

Roth 401(k), 403(b), or 457(b)

 

·                             Roth IRA

·                             Roth 401(k), 457(b),                               403(b)

 

• Footnote *: Only if your adjusted gross income for the tax year does not exceed $100,000 and you are not married filing separately • Footnote †: Only after you have participated in the SIMPLE plan for two years Please visit our site for more Retirement, 401k, and Insurance information: www.erollover.com