Rollover 401(k) in Clarkson Valley, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Clarkson Valley, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with the savings you have in your existing 401(k). Many Clarkson Valley, MO residents have found that seeking the help of professional financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our experienced team of 401(k) specialists and retirement planners will help you determine what makes the most sense for you. For rollover 401(k) counseling in Clarkson Valley, MO, give us a call at 314-930-401K or contact us online.
Rollover 401(k) Options in Clarkson Valley, MO
Typically, you have four options when considering whether to roll over your 401(k). A experienced Clarkson Valley, MO financial advisor like those at Correct Capital will analyze your financial situation and help you determine which option is best for you. Depending on a variety of factors, it may be best 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;
- Cash out your 401(k).
The last option is not advisable unless you need money now. Your previous employer would be obligated to withhold 20% of the balance to prepay the taxes you would owe on it. 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 the account's value.
It is important to mention that businesses in Clarkson Valley, 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 the balance is less than $1,000.
Benefits to Rolling Over a 401(k) into an IRA in Clarkson Valley, MO
Your Clarkson Valley, MO financial advisors at Correct Capital may advise rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of advantages to this strategy:
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 cost basis and market value of shares of employer stock in your 401(k) plan. If you won shares of your previous company in your 401(k), you can put 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 — rather than income tax, which is often higher.
The Custodian of Your Choice
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 funds. By rolling over to an IRA, you'll be able to choose your preferred institution based on how secure they are, the ease of their digital platforms, and the other services they offer.
A Wider Array of Investment Opportunities
While some Clarkson Valley, MO businesses provide 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:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Consolidate Your Savings Accounts
If you have various 401(k) plans with previous employers, there are many advantages to combining all of your savings into one place. In doing so, it won't be nearly as much of a hassle to follow how your investments are growing and you will be able to manage them more directly. 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 assisting both individuals and families and business owners in Clarkson Valley, MO with A-Z 401(k) services. When you retain our services, we'll walk you through special considerations, such as which type of savings plan fits best in your portfolio.
Why Not to Roll Over Your 401(k) into an IRA in Clarkson Valley, MO
Each of our client's financial situation is unique, and your Clarkson Valley, MO retirement planners at Correct Capital may advise that your savings are best kept in a 401(k) plan; whether that be your an old plan or rolling them over into a new one. Some reasons to stick with a 401(k) plan rather than an IRA include:
- If you like the benefits of your current 401(k) plan. If the fees are fair 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 you can begin taking out money without a fee from either a 401(k) or IRA at 59½, a 401(k) does not include a 10% early withdrawal fee if you are 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 pay matching contributions into your 401(k) account. 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.
Check out some of the other services we offer in Clarkson Valley, 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 Clarkson Valley, MO | Correct Capital
At Correct Capital, we treat each client individually and get to know them so we can help them achieve their goals. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience helping Clarkson Valley, MO individuals and families with 401(k) rollovers in addition to several other wealth management services. As fiduciary advisors, we are legally and ethically required to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we are free to be honest and unbiased, and there are no limitations to the services or investment opportunities we can offer you.