Q. I have a 401(k) and an IRA. I’m thinking about consolidating the accounts. What are the pros and cons?
A. There are several great reasons to consolidate your accounts.
You can save on fees, it will be easier to manage investments, there will be less paperwork and calculating Required Minimum Distributions (RMDs) will be a snap, said Bill Connington of Connington Wealth Management in Fairfield.
He said most 401(k)s have limited options available for investments, higher fees and most people take their plan with them when they leave the company, he said.
IRAs would have more diverse investment options and lower fees.
Just note that if you’re still working at the job where you have the 401(k), you may be unable to move it until you end your employment.
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