Reducing all that IRA paperwork

Over your working career you might well accumulate many individual retirement accounts, especially if you switch jobs frequently. Eventually your annual statements will start pouring in from all of these accounts and you'll learn the modern stress of tracking all the accounts housing your golden years' money. Here are tips to make this critical financial task easier.

According to a survey from ING DIRECT USA's ShareBuilder, Americans are generally unsure about how to roll over a 401(k) into an IRA or where to transfer the money. Many Americans surveyed also simply forgot about various old 401(k)s or lack the time to consolidate the accounts.

For example, you may have two 401(k) plans from two previous employers, in addition to the plan from your current employer. You may also hold a few IRAs you opened over the years – and whether they're traditional or Roth accounts can complicate record-keeping even more.

Here's how to organize your retirement accounts and reduce your stress when receiving reams of statements.

First, consider combining your old 401(k)s into your current plan. Not only will this reduce the paper blizzard, combining also allows you to use the other plans' money to beef up one 401(k). Plus you can keep adding to your current plan.

One downside: if your current plan's fees and expenses are more expensive that those of the old plan.

Your remedy? Roll your old 401(k) over into an IRA. Generally, you can do this without taxes or penalty. Make sure to do a direct rollover from plan sponsor to plan sponsor, aka a trustee-to-trustee transfer. If you're thinking of moving from a 401(k) to a Roth IRA, talk with a tax professional to avoid any tax mix-ups – and problems.

Consolidation often equals simplicity and calmness in financial matters; consider combining your IRAs into one. Your best strategy might be to pick the IRA custodian with the lowest fees and expenses and move all your accounts there. If you want to combine a traditional IRA with a Roth IRA, again, talk with a competent tax professional first.

Can you use online statements? Most custodians will provide this service for free (it saves the companies on postage) and some may offer additional discounts for Web-based record-keeping.

You can maintain your statements on your computer or in the Internet cloud using online storage companies; familiar tech companies such as Microsoft and Google also offer Web-based document storage, often as an add-on to email accounts. Plus you don't need to wrangle with the question of how long to keep paper documents buried in your closet.

Also, don't look at your statements often. If your investment horizon is long, consider looking at your statements annually at most. Do examine your statements if you need to calculate your net worth or need to rebalance.

Eyeballing the numbers every month, even every quarter, is often futile and potentially nerve-wracking.

Sterling Raskie, MSFS, MBA, CFP, is an independent, fee-only financial planner at Blankenship Financial Planning in New Berlin, Ill. He is an adjunct professor teaching courses in math, finance, insurance and investments. His blog is Getting Your Financial Ducks in a Row, where he writes regularly about investments, retirement savings and financial planning.

AdviceIQ -- @adviceiq on Twitter -- is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.