Q.: I'm 72 and will soon take my first Required Minimum Distribution. I have seven retirement accounts. A friend suggested I consolidate them. What is your take? P.S.
A.: I agree with your friend. Consolidation is in order. Having multiple retirement accounts is an unnecessary clerical chore and simply becomes quite unmanageable at older ages. It becomes particularly nerve-racking when you have to calculate RMDs where a simple arithmetic error can be quite costly. Remember, under-reporting an RMD may lead to a penalty tax of 50 percent.
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