Rollover 401(k) in Belleville, IL
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Belleville, IL. Starting a new job in Belleville, IL is exciting, but it can be hard to know what to do with the savings you have in your existing 401(k). Many Belleville, IL residents don't have the time, knowledge, or interest to oversee multiple retirement accounts or to carefully weigh their best options when considering a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) experts and financial planners will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) services in Belleville, IL, give us a call at 314-930-401K or contact us online.
How You Can Approach Your Rollover 401(k) in Belleville, IL
Generally speaking, there are four different things you can do with your 401(k) account with your old employer. A qualified Belleville, IL financial advisor like those at Correct Capital will consider your finances and guide you towards your preferred option. Depending on your specific circumstances, we may advise to:
- Keep your 401(k) with your old employer;
- Roll over your 401(k) to your new employer's 401(k);
- Roll over your 401(k) into a Traditional IRA or Roth IRA;
- Take the cash value out of your 401(k).
Cashing out is only truly an option if you need funds quickly. Your previous employer will have to take out 20% of the funds for tax purposed. You may also face a 10% early withdrawal penalty from the IRS, and you would would be subject to federal, state, and local taxes. Cashing out could leave you with less than 50% of the funds.
It is important to note that businesses in Belleville, IL are allowed to make you move the money if your account has less than $5,000 in it. Lastly, you may be required to cash out your plan if the balance is less than $1,000.
Benefits to Rolling Over a 401(k) into an IRA in Belleville, IL
Your Belleville, IL financial advisors at Correct Capital may counsel that rolling over your 401(k) funds into a Traditional or Roth IRA is your best option. This is beneficial for several different reasons:
Take Advantage of Special Rules if You Have Publicly Traded Company Stock in Your 401(k)
Net unrealized appreciation (NUA) is the difference between the original value and market value of shares of employer stock in your 401(k) account. If part of your 401(k) includes company stock, you can put that difference into a standard brokerage account, and roll the other funds to an IRA. This way, you may pay long term capital gains tax on your company stock — which is usually 15% but can go up to 20% for people with high-income — rather than income tax, which may be significantly more.
Pick Your Own Financial Institution
When you opt to put your savings in a 401(k), you will not have any control over the 401(k) company that holds your money. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll have your pick of custodians based on how secure they are and the range of services they offer.
More Diverse of Investment Options
While some Belleville, IL employers provide 401(k) plans that permit a wide range of investment opportunities, IRAs typically offer an individual investor many more options than 401(k) plans. IRAs typically allow investment in almost any type of asset, including:
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
Combine Your Savings Accounts
If you change jobs frequently, there are many advantages to incorporating the entirety of your retirement funds into one plan. In doing so, it won't be nearly as much of a hassle to follow how your savings are performing and you will be able to manage them more directly. It may also be the better option for long-term growth.
Continue Adding Money to Your Accounts
While your money will still grow in you old 401(k) plan, you will no longer be able to contribute more savings to it. By rolling over the funds into an IRA, you continue adding more money over time.
The financial advisors of Correct Capital will help you understand if rolling over a 401(k) is right for you, and which type of rollover is preferred. We have more than two decades of experience assisting both individuals and families and business owners in Belleville, IL with a variety of 401(k) services. When you meet with us, we'll guide you through important considerations, such as which type of savings plan fits best in your portfolio.
When to Avoid a 401(k) Rollover in Belleville, IL
Every person's finances vary, and your Belleville, IL retirement planners at Correct Capital may recommend that your funds are best kept in a 401(k) account; whether that be your previous employer's or your new one. Some reasons to stick with a 401(k) plan instead of an IRA include:
- If your current 401(k) plan works for you. If the fees are reasonable and the return on investment is good, there may not be a good reason to roll over your 401(k). You are not required to roll over a 401(k) immediately, so you are free to change your mind and transfer the funds at a later date.
- Avoid early withdrawal penalties if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 59½, the threshold in a 401(k) for a 10% early withdrawal fee is 55. A 401(k) may be best if you need or want the money sooner.
- Loans from an IRA are not allowed. While typically not recommended, if you are in a situation where you need to take out a loan from your retirement savings, it is important to note that you cannot take a loan out of either a Traditional or Roth IRA.
- Your employer may match your 401(k) contributions. While some employers will allow you to roll money out of your 401(k) to an IRA before retirement, it may make more sense to keep contributing to your 401(k) to receive an employer match and keep your retirement assets in one place.
Click on the links below to see some of the other services we offer in Belleville, IL:
- Wealth Management
- 401k Companies
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
Rollover 401(k) in Belleville, IL | Correct Capital
At Correct Capital, we treat each client individually and get to know them so we can help them realize their goals. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience aiding Belleville, IL individuals and families with 401(k) rollovers along with many other wealth management services. As fiduciary advisors, we have a legal and moral obligation to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we will always be straightforward and unbiased, and we are not bound to only offer you limited investment options.