Rollover 401(k) in Brentwood, MO

Rollover 401(k) in Brentwood, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Brentwood, MO. Moving to a new job in Brentwood, MO is exciting, but it can also lead to confusion about the best way to manage your 401(k) account with your previous employer. Many Brentwood, MO 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 experienced team of 401(k) specialists and retirement consultants will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) services in Brentwood, MO, reach out to us today at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in Brentwood, MO

Generally speaking, there are four different things you can do with your 401(k) plan with your old employer. A knowledgeable Brentwood, MO financial advisor like those at Correct Capital will analyze your finances and help you determine which option is best for you. Depending on your current financial health and your time horizon, we may recommend to:

  1. Leave the funds in your former employer's 401(k) plan;
  2. Roll over your 401(k) to a plan with your new employer;
  3. Roll over your 401(k) into a Traditional IRA or Roth IRA;
  4. Take the cash value out of your 401(k).

Cashing out is not recommended unless you need money now. Your previous employer will have to withhold 20% of the balance for tax purposed. You may also face a 10% early withdrawal penalty from the IRS, and you would also have to pay federal, state, and local taxes. Meaning, you could lose the majority of your savings.

It is important to mention that many employers in Brentwood, MO require you to move the funds in your 401(k) if your account has less than $5,000 in it. Furthermore, they may be able to cash out your account if the balance is less than $1,000.



Benefits to Rolling Over a 401(k) into an IRA in Brentwood, MO

Your Brentwood, MO 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 increase in value between the cost basis and market value of shares of employer stock in your retirement account. If part of your 401(k) includes company stock, you can put that increase in value into a standard brokerage account, and roll the other funds to an IRA. The advantage of this is that you may pay long term capital gains tax on the shares — 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 Custodian

When you opt to put your retirement funds in a 401(k), you will not have any control over the 401(k) company that holds your savings. By rolling over to an IRA, you'll be able to choose your preferred custodian based on how secure they are and the range of services they offer.


A Wider Range of Investment Opportunities

While some Brentwood, MO businesses offer 401(k) plans with few limitations on your investment opportunities, you will generally have much more control over an IRA than you would in a 401(k) plan. IRAs typically allow investment in almost any type of asset, including:

  • Shares
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • ETFs
  • Real estate investment trusts
  • Annuities

Combine Your Savings Accounts

If you change jobs frequently, it may make the most sense to incorporate the funds from all your accounts into one plan. That way, you much much more efficiently follow how your savings are growing 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 you can still reap the benefits of the investments and savings that are already there, you won't be able to add funds to a 401(k) plan with your previous employer. If you roll the funds out of your old employer's plan, you may be eligible to keep contributing to the plan you've picked out.

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 over 20 years of experience advising both individuals and families and business owners in Brentwood, MO with a variety of 401(k) services. When you meet with us, we'll guide you through special considerations, for instance required minimum distribution model makes the most sense for you.

Why Not to Roll Over Your 401(k) into an IRA in Brentwood, MO

Every person's finances vary, and your Brentwood, MO retirement planners at Correct Capital may recommend that your savings should be left in a 401(k) plan; either your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan rather than an IRA are:

  • If you like the benefits of your current 401(k) plan. If the fees aren't exorbitant and you're getting strong returns, 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 fees if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 59½, a 401(k) does not include a 10% early withdrawal fee if you are 55. So, a 401(k) may be preferable if you would like to retire earlier.
  • Loans from an IRA are not allowed. While taking a loan from retirement savings isn't recommended, you would only be able to do so if they are in a 401(k) plan.
  • Your employer can pay matching contributions into your 401(k) plan. Employers may contribute a dollar-for-dollar or partial match into a 401(k), while an IRA would only include the money you put into it.

Click on the links below to see some of the other services we offer in Brentwood, MO:

Rollover 401(k) Brentwood, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Brentwood

Rollover 401(k) in Brentwood, MO | Correct Capital

At Correct Capital, we give all of our clients personalized attention and cater our services and advice to their current financial status, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years of combined experience helping Brentwood, MO individuals and families with 401(k) rollovers along with a host of other wealth management services. As fiduciary advisors, we have a legal and moral obligation to oversee your account in a way that benefits you and only you. As an independent firm, we are free to be honest and unbiased, and we are not bound to only offer you limited investment options.

Call us today at 314-930-401K or contact us online to schedule an appointment with one of our experienced 401(k) specialists and financial advisors today.

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