Wisdom to Wealth: Monday, May 3

Published: May. 3, 2021 at 5:59 PM EDT
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John Halterman: You know, people ask me all the time, I’ve got an IRA, a Roth IRA, an inherited IRA and a whole bunch of different accounts. And, why can’t I just combine all of them into one account? Well, I gotta tell you, it’s all about taxation. You gotta remember, a Roth IRA is one-hundred percent tax free. Where an IRA and a simple IRA is actually going to be taxable to you down the road. And in the event of an inherited IRA, well, you have to take RMDs immediately upon getting those. And so, by combining all of them, what ends up happening is, you end up screwing up all the taxes. And so, I tell people, we will definitely minimize and help you organize all these accounts, but the idea of just instantly combining them may not work the way you want. But, we will definitely make sure they are done the correct way. For more answers, call or visit our website today.

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