401(k) Rollover Planning St. Louis, MO. Have you recently left your current job, taken a new one, or hung out your own shingle as a freelancer or independent contractor? If you are like many St. Louis residents, you likely have a 401(k) retirement plan with your old employer that you are unsure how to deal with. Once you leave an employer, they no longer match deposits into the account, and you may only be able to withdraw money from that account once in the future. In addition, if you have multiple old 401(k) accounts from different workplaces, keeping tabs on them can be more trouble than they are worth.
You have a number of options when it comes to rolling over old 401(k) accounts in St. Louis, and the financial professionals at Correct Capital are here to help you plot the best course for your retirement goals. Call us today at 314-930-4015, or contact us online, to schedule a no-obligation consultation and learn about all your options when it comes to 401(k) rollovers in St. Louis.
IRAs in St. Louis: What They Do, Benefits, and Types
An Individual Retirement Account, or IRA, is a type of retirement investment vehicle that gives its holder much more control over how their money is invested. Unlike most 401(k) plans, which limit their beneficiary to a select number of mutual fund options and company stock, money in an IRA can be invested in myriad ways. Mutual funds, ETFs, annuities, stocks, CDs — IRAs allow for just about any type of asset to be utilized, including real estate in some cases. In addition, you should also consider the fees associated with your 401(k) plan and compare them to IRA options.
There are two main types of IRA, traditional and Roth IRAs: the difference between the two relates to taxes and withdrawals. Traditional IRAs make the initial investment tax-deductible (subject to IRS income limits) upon deposit. Taxes are eventually taken when funds are withdrawn, and once an IRA holder turns 72 years old they must begin withdrawing what are called required minimum distributions, regardless of whether they are still in the workforce. Roth IRAs, on the other hand, treat all deposits as taxable income immediately upon deposit. However, if you make regular deposits into a Roth IRA for at least five years, all funds after this time — including earnings and after-tax contributions — are entirely tax-free. In addition, Roth IRAs have no RMD requirements unlike traditional IRAs, plus your heirs can inherit any money in the account upon your death. (Anyone except a spouse who inherits a Roth IRA must draw down the account within 10 years after the death of the holder, according to new regulations passed in 2019 as part of the SECURE Act.)
A growing number of 401(k) accounts specifically describe themselves as "traditional" or "Roth" 401(k)s, mostly again relating to taxes. The type of 401(k) you had at your previous employer usually determines what kind of IRA you can roll the 401(k) over into. However, it is not uncommon for people with traditional 401(k) plans to roll them over into a Roth IRA, via a process known as an IRA conversion.
Contact St. Louis, MO 401(k) Rollover Specialists
Converting your old 401(k) to an IRA is a retirement strategy that many St. Louis residents have successfully performed, but it comes with a number of questions: Do I want to pay taxes now, or do I want to pay them later? Am I currently in a higher tax bracket, or will I likely move into a higher tax band in the future? Will I need to withdraw money before I need to retire?
Having an experienced St. Louis, MO retirement planner in your corner can allow you to craft the right retirement strategy for your needs and help you meet goals you always dreamed of accomplishing. At Correct Capital, we get to know all our St. Louis 401(k) rollover clients, discuss their current situation and end goals, and devise an focused strategy that provides them with financial security for the future. Our staff of St. Louis fiduciary advisors includes experienced retirement counselors and CERTIFIED FINANCIAL PLANNER™ professionals who can walk you through multiple options for what to do with your old 401(k), as well as how best to invest the funds in your new IRA. Talk to us today by calling 314-930-4015, or contact us online, to speak to an advisor about our St. Louis, MO 401(k) Rollover services or to schedule a complimentary discussion of your retirement options.