Retirement Account Consolidation Calculator
Retirement Account Consolidation
Evaluate the potential fee savings and simplification benefits of consolidating multiple retirement accounts into fewer accounts.
Formula
Current Annual Fees = Sum of (Balance x Fee %) for each account; Consolidated Fees = Total Balance x New Fee %; Annual Savings = Current Fees - Consolidated Fees; Projected Savings = Sum of Annual Savings x (1.06)^year
Frequently Asked Questions
Should I consolidate my retirement accounts?
Consolidation often makes sense when you have multiple old 401k plans with high fees. Benefits include simplified management, potentially lower fees, easier asset allocation, and streamlined required minimum distributions. However, consider any unique benefits of existing plans before rolling over.
What is the difference between a rollover and a transfer?
A direct transfer (trustee-to-trustee) moves funds between accounts without you touching the money, avoiding withholding and penalties. A rollover gives you the funds for up to 60 days, during which you must deposit them into the new account to avoid taxes and penalties.
Can I roll a 401k into an IRA?
Yes, you can roll a traditional 401k into a traditional IRA or a Roth 401k into a Roth IRA tax-free. Rolling a traditional 401k into a Roth IRA triggers a taxable Roth conversion on the full amount.
You may also need
$
401k Employer Match Maximizer Calculator
Determine the optimal 401k contribution rate to fully capture your employer match and calculate how much free money you may be leaving on the table.
Finance$
Roth Conversion Ladder Calculator
Plan a multi-year Roth conversion ladder strategy to move traditional IRA or 401k funds into a Roth IRA while minimizing total taxes paid over time.
Finance