There are 3 types of money accounts:
First, Non-qualified is typically money you pay on taxes every year. If you take out all of the money from the account, you don’t owe any taxes on it other than the most recent interest because you have already paid the income tax on the basis of the account. There are a few exceptions to this rule.
The second, IRA or qualified money. What is qualified money? This could be your IRA, 401k, or really any tax-deferred savings plan. In general, this is money you're required to take out beginning at 70½, and if you take it out before 59 ½, unless you have a plan, strategy, or specific circumstances you are going to be penalized.
Essentially the difference between qualified and non-qualified money is when and how you pay taxes on it.
The third type of money is the most sought after, which is Tax-Free money. Life Insurance is always tax-free. A Roth ira is an excellent example of money that you’re not forced to take out at 70½. You can’t take it out before 59 ½ unless you're going out on a strategy. It’s all tax-free forever. The money you put into it grows tax-free and comes out tax-free.
Those are the three types of money, and it’s essential when decluttering your portfolio. If you only have those three types of money and 11 accounts. Then you can solidify those into as little three accounts if you wish.