Rollover 401(k) in Chesterfield, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Chesterfield, MO. Starting a new job in Chesterfield, MO is exciting, but it can be hard to know what to do with the savings you have in your existing 401(k). Many Chesterfield, 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 financial planners will help you understand your options. For rollover 401(k) services in Chesterfield, MO, reach out to us today at 314-930-401K or contact us online.
What You Can Do With Your Rollover 401(k) in Chesterfield, MO
Typically, you have four options when considering whether to roll over your 401(k). A professional Chesterfield, MO financial advisor like those at Correct Capital will be able to look at your assets, savings, and 401(k) plan and guide you towards what will work best for you. Depending on a variety of factors, it may be best to:
- Leave the savings in your former employer's 401(k) plan;
- Roll over your 401(k) to a plan with your new employer;
- Roll over your 401(k) into a Traditional IRA or Roth IRA;
- Take the cash value out of your 401(k).
Cashing out should only be considered if you need funds quickly. Your previous employer will have to withhold 20% of the savings for tax purposed. Depending on how close you are to retirement, the IRS may also withhold a 20% early withdrawal penalty, and you would potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of the funds.
It is important to note that companies in Chesterfield, MO are allowed to make you move the money if your plan has less than $5,000 in it. Furthermore, you may be required to cash out your plan if it has less than $1,000.
Benefits to Rolling Over a 401(k) into an IRA in Chesterfield, MO
Your Chesterfield, 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:
Pay Less in Taxes With 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 401(k) plan. If part of your 401(k) includes company stock, you can transfer that increase in value into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. This way, you may pay long term capital gains tax on your company stock — which caps out at 20% for the highest earners — rather than income tax, which may be significantly more.
Pick Your Own Financial Institution
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 be able to choose your preferred institution based on how secure they are and the range of services they offer.
More Diverse of Investment Opportunities
While some Chesterfield, MO businesses provide 401(k) plans that permit a wide range of 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:
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
Consolidate 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. In doing so, it won't be nearly as much of a hassle to track how your investments are growing and you will be able to manage them more directly. It may also be the better option for long-term growth.
Keep Contributing 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. By rolling over the funds into an IRA, 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 more than two decades of experience advising both individuals and business owners in Chesterfield, MO with A-Z 401(k) services. When you hire Correct Capital, we'll walk you through special considerations, for instance required minimum distribution model makes the most sense for you.
When Not to Roll Over Your 401(k) into an IRA in Chesterfield, MO
Every person's finances vary, and your Chesterfield, MO retirement planners at Correct Capital may advise that your savings are better off in a 401(k) plan; either your an old plan or rolling them over into a 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 aren't too high and you're getting strong returns, it may be advisable to keep your savings where they are. 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 you can begin taking out funds without a penalty from both a 401(k) or IRA at 59½, you will not face 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're considering early retirement.
- 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 pay matching contributions into your 401(k) account. 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.
Take a look at some of the other services we offer in Chesterfield, MO:
- 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 Chesterfield, MO | Correct Capital
At Correct Capital, we give all of our clients personalized attention and tailor 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 seven decades of combined experience assisting Chesterfield, MO individuals and families with 401(k) rollovers as part of our comprehensive wealth management services. As fiduciary advisors, we are legally and ethically bound to act only in your best interested. As an independent firm, we are free to be direct and objective, and we are not bound to only offer you limited investment opportunities.