Rollover 401(k) in Central West End, MO

Rollover 401(k) in Central West End, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Central West End, MO. Moving to a new job in Central West End, MO can lead to new opportunities, but it can be hard to know what to do with the savings you have in your 401(k) account with your previous employer. Many Central West End, MO residents have found that enlisting the services of qualified financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and retirement consultants will help you get the most out of your savings. For rollover 401(k) services in Central West End, MO, call us today at 314-930-401K or contact us online.


Rollover 401(k) Options in Central West End, MO

Typically, you have four options when considering whether to roll over your 401(k). A professional Central West End, MO financial advisor like those at Correct Capital will consider your assets, savings, and 401(k) plan and guide you towards your preferred option. Depending on a variety of factors, it may be best to:

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

Taking out the cash value is not advisable unless you need money now. Your previous employer would be obligated 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. Meaning, you could lose the majority of the account's value.

It is important to note that many businesses in Central West End, MO obligate you to move the funds in your 401(k) if your account has less than $5,000 in it. Additionally, they may be able to cash out your account if it has less than $1,000.



Benefits to Rolling Over a 401(k) into an IRA in Central West End, MO

Your Central West End, MO financial advisors at Correct Capital may recommend rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of advantages to this strategy:


Pay Less in Taxes With 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 company stock in your 401(k) account. If part of your 401(k) includes company stock, you can transfer that increase in value into a standard brokerage account, and roll the remainder to an IRA. By separating your 401(k) into two accounts, you may pay long term capital gains tax on your company stock — which caps out at 20% for the highest earners — instead of income tax, which is often higher.


The Custodian of Your Choice

In a 401(k) plan, the money will be held by the 401(k) company your employer chooses. By rolling over to an 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 Central West End, MO companies offer 401(k) plans with few limitations on your investment opportunities, IRAs typically offer an individual investor many more options than 401(k) plans. In an IRA, you can invest in any number of assets, including:

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

Combine Your 401(k) Plans

If you have various 401(k) plans with previous employers, it may make the most sense to merge the funds from all your accounts into one place. That will make it easier to follow how your savings are growing and managing them will be more streamlined. You could also see greater long-term gains.


Keep Contributing to Your Accounts

While you will still see return on your investments in you old 401(k) plan, you will no longer be able to contribute more savings to it. If you roll the funds out of your old employer's plan, you will be able to supplement your savings.

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 helping both individuals and families and business owners in Central West End, MO with numerous 401(k) services. When you meet with us, we'll walk you through special considerations, for instance what type of account makes the most sense for your time horizon.

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

Depending on how close you are to retirement and other factors your Central West End, MO retirement planners at Correct Capital may advise that your investments are best kept 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 your current 401(k) plan works for you. If the fees aren't exorbitant and the return on investment is good, there may not be a great 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, you will not have to pay a 10% early withdrawal fee taking money out of a 401(k) once you have turned 55. A 401(k) may be best if you need or want the money sooner.
  • You cannot take a loan out of an IRA. While typically not recommended, if you are in a situation where you need to take out a loan from your retirement savings, you would only be able to do so if they are in a 401(k) plan.
  • Your employer can put matching contributions into your 401(k) plan. 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) your employer will match your contributions.

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

Rollover 401(k) Central West End, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Central West End

Rollover 401(k) in Central West End, MO | Correct Capital

At Correct Capital, we give all of our clients bespoke guidance and cater our services and advice to their current financial health, objectives, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience helping Central West End, MO individuals and families with 401(k) rollovers as part of our comprehensive wealth management services. As fiduciary advisors, we are legally and ethically required to act only in your best interested. As an independent firm, we will always be direct and objective, and we are not bound to only offer you limited investment opportunities.

Give us a call today at 314-930-401K or contact us online to schedule an appointment with one of our qualified 401(k) experts and retirement planners today.

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