Three Strategies to Organize Your Retirement Accounts
Streamlining your accounts and investments, which helps you to know where all your money is and gives you more control over it, is key to a sustainable retirement.


For most Americans preoccupied with amassing enough savings to avoid running out of money in retirement, organizing their accounts and investments isn’t a top priority. Instead, they’re focused on accumulating as much in retirement assets as they possibly can. While that focus is commendable, without organization, it can be more difficult to create the sustainable retirement you’re seeking.
If you’re like most pre-retirees, you’ve likely saved for retirement for decades through jobs with different employers. That may mean that you’ve got retirement accounts with different employers. You may also have your own retirement savings account in the form of a traditional IRA or Roth IRA. If you have a spouse, the number of retirement accounts you have could easily double, or more. A 2021 research study by Capitalize revealed that Americans have more than $1 trillion sitting in 401(k) accounts with former employers.
And within those accounts you may have a mishmash of retirement investments. Often, the investments offered in retirement accounts are limited to captive offerings that may not align with your retirement objectives. Vanguard reports that the average employee enrolled in a 401(k) plan held 2.4 funds within their account. According to the Investment Company Institute, retirement plan participants in their 60s held, on average, 37.8% of their portfolio in stock funds, 28.2% in target date funds, 3.7% in non-target date balanced funds, 11.2% in bond funds, 1.3% in money market funds, 8.4% in stable value funds and 3.6% in company stock in 2023.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

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.
Did you know that you don’t have to stay in those limited 401(k)s? You may have more opportunities than you think. To position yourself successfully for retirement, it’s important to get a handle on what you own, where those savings are located and have an understanding of all of your options so that you can organize your retirement savings in a way that is most accretive to your overall retirement goals. With that in mind, here’s a three-step process to set yourself up for success.
Strategy #1: Know what you own and where you own it
The first step in the organizational process is to track down all your retirement accounts. You can use online tools and apps such as Morningstar, Empower or Mint. You can also use a spreadsheet such as Excel or Google Sheets. What you use isn’t as important as actually creating a system and sticking to it. If you have a spouse or a partner, you can use the same method to track their retirement savings.
Start with your current employer and your company-sponsored retirement plan. If you have an IRA or Roth IRA, add that. If you’ve been in the habit of rolling over your retirement savings from past employers into your IRA, great job! If not, go onto the retirement savings portals for those employers and gather information.
If you’re already retired, you obviously don’t have a current employer; otherwise, the process is the same.
It is recommended that you track the specific investments you have, including mutual funds, exchange-traded funds, stocks, stable value funds and so on. You can track the price, if you want, although that can be difficult with investments within 401(k) plans that may not be easily tracked through the apps mentioned above. You can also include the overall value of each account to get an idea of your total retirement savings.
Strategy #2: Consolidate your accounts
If you’ve got retirement accounts that are still with past employers, now is the time to consolidate them into one place. That involves rolling them over into an IRA.
In general, IRAs are preferable to 401(k)s because they offer a wider universe of investment options. Many 401(k) plans don’t have many options; in addition, the options they offer may not be very good in terms of their diversification, performance or more. When you invest in an IRA, you have much more freedom to choose your investments and align those investments with a more retirement-friendly investment strategy.
How does that work? If you already have an IRA, you fill out specific rollover forms with the company that holds that IRA account, which is known as the custodian. Those forms are then sent to the custodian of your company-sponsored retirement accounts, which will then send the money to the IRA custodian. If you don’t already have an IRA, you will need to open an IRA and then transfer the retirement accounts from the other custodians into that new account.
This is a bit of a tricky area, as you don’t want to make a mistake that would cause a withdrawal, rather than a rollover, of your company-sponsored retirement funds. A withdrawal is taxable and may include penalties for early withdrawal from the IRS, while a rollover has no tax consequences.
The best way to accomplish this is with a direct rollover. In that case, your savings will go directly from your old 401(k) provider to your IRA custodian, leaving no room for tax complications.
The other option is an indirect rollover, in which you receive a check or direct deposit from your former employer and then deposit that in your IRA. However, your former employer’s retirement plan will initiate a 20% tax withholding in that case. You have 60 days from the date you receive the distribution to roll it over without penalty.
To handle the rollover without a tax mishap, follow this process:
- Confirm the account details of the retirement account with the former employer where the money will be transferred from, including the provider, account number, provider phone number and type of account, such as 401(k), 403(b), Roth 401(k) or other type of account.
- Confirm your IRA account details where the money will be transferred to, including the name of the financial services firm, account number and financial services firm phone number.
- Call the appropriate department, such as human resources, at your former employer to start the process of filling out the rollover paperwork.
- Call customer service at your IRA custodian to start the process of filling out the paperwork on their end, as they need to notify your former employer that they will accept the funds transfer.
- Follow up until the transfer is complete and the savings from your retirement account at your former employer are in your IRA account.
This process may be frustrating and time consuming, involving back-and-forth calls with the various service providers. Ultimately, though, it will be worth it to have your retirement savings consolidated. If you work with a financial adviser, they may handle all this for you, which could save you time, aggravation and potential mistakes.
Strategy #3: Consider in-service withdrawals
An in-service withdrawal from your current employer-sponsored retirement account is a powerful way to expedite your retirement savings investment strategy. An in-service withdrawal is a type of rollover from your current employer-sponsored retirement account into an IRA that you can initiate, oftentimes even before age 59½ without a tax penalty. This allows you to keep a portion of funds in your 401(k) and keep contributing, while rolling over the other portion into an IRA account better suited for your retirement goals. Essentially, you are allowing your money to work double duty for you!
To proceed with an in-service withdrawal, your employer-sponsored plan must allow in-service withdrawals. The best way to find this out is to call the appropriate department and ask.
The benefits of an in-service withdrawal are similar to rollovers from a former employer’s 401(k) plan to an IRA. You gain the advantage of having much more control over your investments in an IRA than in a 401(k) plan. As you move closer to retirement, the benefits are even greater, as you can adjust your strategy based on your time horizon.
When you’re saving for retirement, you are in what is known as the accumulation phase of retirement. But when you actually retire, you are in the distribution phase. The distribution phase is completely different from the accumulation phase, requiring a completely different investment strategy.
In retirement, you need ongoing income to replace your paycheck. That is what a retirement income strategy can help you achieve, which is why it is important to start on that at least several years before you retire. Otherwise, you could be subject to what is known as sequence of returns risk, in which the market is in a decline when you retire or right after you retire, reducing the value of your savings just when you need income in retirement. This situation can negatively impact or even delay your retirement plans.
Using an in-service withdrawal from your current 401(k) can help you avoid that risk, by moving money into an IRA with a more retirement-friendly investment strategy.
A final word
Nearly two-thirds of Americans are concerned about running out of money in retirement, according to a recent GOBankingRates survey.
Organizing and consolidating your retirement savings through IRA rollovers and in-service withdrawals can position you for a sustainable retirement. Having quality asset allocation and diversification can be a key factor in achieving your retirement. Be sure that you are aware of all of your options so that you don’t inadvertently limit your retirement investing options and potential.
Amy Buttell contributed to this article.
This information has been provided by an Investment Adviser Representative and does not necessarily represent the views of the presenting adviser. The statements and opinions expressed are those of the author and are subject to change at any time. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Gracie Gann, partner at Advantage Retirement, takes pride in being a part of a family-owned firm that provides an array of financial options, strategies and services to best fit the needs of each unique client. Advantage Retirement specializes in helping clients navigate the twists and turns of retirement through an ongoing relationship and diligent financial planning. As a part of an independent advisory firm, Gracie prioritizes informing clients on all of their options, believing that if a client knows the full scope of options, they can feel more confident in constructing the best path for their future.
-
Savings Goal Calculator
Tools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
Cash vs. Mortgage: How to Pay for Your Second Home
Should you buy your second home outright or finance it with a loan? Weigh the pros, cons and tax implications before making the leap.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to Know
If you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
I'm a Real Estate Investing Expert: Optional 721 UPREIT DSTs Can Be the Best of Both Worlds
Before investing in any 721 UPREIT exchange, look for one that offers a straightforward, investor-friendly exit.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop Investments
Truck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.