The Benefits of IRA Consolidation

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Do you own two or more IRA Accounts? Do you have a 401(k) or similar qualified retirement plan with a former employer? Well, you are not alone. With more and more Americans changing jobs and leaving their retirement investments behind in their former employer’s plan, it can be very frustrating to manage many different accounts. Over time, you may even lose track of some of your older accounts. By consolidating your retirement accounts into one single, Rollover IRA, your money has the potential to work harder for you and keeping track of your investments can be easier and more convenient as your assets continue to grow tax-deferred.

Below are several benefits of consolidating your Retirement Accounts into a single Rollover IRA:

Simplified Investment Management:

Maintaining retirement accounts with different financial institutions can make it very difficult to maintain a consistent, comprehensive investment strategy. Consolidating your assets into one Rollover IRA will help you maintain a single investment strategy that is in-line with your investment goals, risk tolerance and time horizon.

Greater Investment Choices:

401(k) or other employer-sponsored qualified plans have limited investment choices. By consolidating into a Rollover IRA you will have access to a full range of investment vehicles at your disposal to create a well diversified asset allocation that best meets your personal risk tolerance and financial goals.

Gain More Control:

401(k) or other employer-sponsored qualified plans may impose limits on account transactions and even when you are able to access your funds. When you consolidate into a Rollover IRA, many of those restrictions and limitations can be avoided. You are now in control of when you can access your funds. Also, with the exception of states with community property laws that govern the property rights of married individuals, IRA account owners have sole control over who they name in their beneficiary designations; not the case with beneficiary designations in 401(k) or other employer-sponsored qualified plans.

Simplified Monitoring:

By consolidating your assets into one Rollover IRA, you will receive a single account statement instead of several statements from various financial institutions, making it much easier to keep track and monitor your progress and investment results.

Simplified Withdrawal Strategy:

As you approach retirement, having your assets in a single Rollover IRA will enable you to establish an all-inclusive withdrawal strategy.

Simplification of Required Minimum Distribution (RMD) calculations:

When you reach age 70½, you will be required to start withdrawing a RMD each year from your Traditional IRAs and employer-sponsored qualified plans. That calculation can be confusing when you have multiple accounts at different financial institutions. By consolidating all your accounts into one Rollover IRA, the calculations are considerably easier and withdrawals are simpler.

Regardless of how many different types of retirement accounts you have, the following accounts may be eligible for consolidation into a Rollover IRA: 

IRAs held at financial institutions (Banks, Credit Unions, Mutual Fund Companies, etc.) 

Assets of former employer-sponsored retirement plans including: 

  • 401(k) plans 
  • 403(b) plans 
  • Governmental 457(b) plans 
  • Defined benefit plans 
  • Profit-sharing plans 
  • ESOP plans 
  • Money purchase plans 
  • Keogh plans

Consolidating your retirement accounts into one Rollover IRA can help you take control of your financial future. By establishing a relationship with Canandaigua National Trust Company of Florida, we become your Trusted Advisor and you’ll receive a higher level of personal service through our Pledge of Accountability, which includes a money back guarantee.* Our experienced team of Investment Advisors helps you achieve your long-term goals. If you would like to discuss Rollover IRA options in more detail, please call us today at 941-366-7222.



*Pledge of Accountability Fee Refund Rules. You, our Client, are entitled to have the Annual Fee charged by CNTF for management of your CNTF Account returned should we fail to deliver on the “Pledge of Accountability” requirements as described above. The Annual Fee is defined as the then prevailing fee charged by CNTF under the terms of your Account Agreement based on the market value of the assets under management as of March 31 of any given calendar year up to $10,000. Our Pledge of Accountability to you will be effective after you have signed and returned the Pledge to your CNTF Relationship Manager. Only individual accounts where CNTF has full discretion qualify. Custody, Self-Directed and IRA Self-Directed accounts are excluded. To be eligible, your Account must be opened for a minimum of 1 year.




This material is provided for general information purposes only and is not a recommendation or solicitation to buy or sell any particular security, product or service. Investments are not bank deposits, are not obligations of, or guaranteed by Canandaigua National Trust Company of Florida and are not FDIC insured. Investments are subject to investment risks, including possible loss of principal amount invested. Investments may be offered through affiliate companies.

Posted by Kelly Hohman at 06/15/2016 07:51:26 PM