Both my husband and I have several traditional and Roth IRAs. Some of these accounts charge an annual maintenance fee. Can we consolidate them to reduce the cost?
Yes, each of you can set up a traditional IRA and a Roth IRA and consolidate all of your funds into those accounts. Not only will consolidating save you money by trimming maintenance fees, it will make it easier for you to keep track of your investments. However, you and your husband cannot combine your separate IRAs into a single account; they must remain separate.
Some firms, such as TD Ameritrade, charge no annual maintenance fees for IRAs. But even if you choose a firm that usually charges a fee, you might be able to avoid it by keeping a certain amount of money in your accounts.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Vanguard, for example, charges $20 a year for all IRAs with balances of less than $10,000. But you can avoid the charge if your household has more than $50,000 in total assets with Vanguard or if you sign up to receive statements and other documents electronically.
But even though you can consolidate all of your traditional IRAs in one account and all of your Roths in another account, it might not always be a good idea, says Maria Bruno, of Vanguard's Investment Counseling and Research Group. If you keep money from a previous employer's 401(k) in a separate rollover IRA, for example, you may be able to roll that into a new employer's 401(k) in the future. And with Roths, it may be a good idea to keep accounts you've converted from traditional IRAs separate from contributory accounts because there are different rules regarding the holding period before you can get access to your earnings tax-free, she says.
-
Quiz: How Much Do You Know About Taxes on Social Security Benefits?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
Getting Out of an RMD Penaltyretirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
Make the Most of the New Military Retirement Plan
retirement The government is offering a new retirement option so that service members who leave the military before qualifying for a pension can still receive some benefits.
-
How Changes in Income Affect Medicare Premiums
Medicare Medicare beneficiaries can see their premiums go up if their income rises, although for some that increase will be only temporary.
