Rollover 401(k) in Columbia, IL

Complimentary financial planning By Savology

Rollover 401(k) in Columbia, ILProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Columbia, IL. Moving to a new job in Columbia, IL 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 Columbia, IL 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) experts and financial planners will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) counseling in Columbia, IL, give us a call at 877-930-4015 or contact us online.


Rollover 401(k) Options in Columbia, IL

Generally speaking, there are four different things you can do with your 401(k) plan with your old employer. A qualified Columbia, IL financial advisor like those at Correct Capital will be able to look at your financial situation and guide you towards what will work best for you. Depending on a variety of factors, we may recommend 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. Cash out your 401(k).

Cashing out is not advisable unless you need money now. Your previous employer would be required to withhold 20% of the balance in order to pay taxes on it. Depending on your age, the IRS may also take 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 mention that many employers in Columbia, IL require you to roll over the funds to an IRA or new 401(k) if your account has less than $5,000 in it. Additionally, you may be required to cash out your plan if the balance is less than $1,000.


´╗┐

Schedule a Meeting With an Advisor Today

Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.

Schedule a 15-Minute Introductory Call


Benefits to Rolling Over a 401(k) into an IRA in Columbia, IL

Your Columbia, 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. There are a variety of benefits 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 cost basis and market value of shares of employer stock in your retirement plan. If you won shares of your previous company in your 401(k), you can transfer that increase in value into a standard brokerage account, and roll the remainder to an IRA. The advantage of this is that you may pay long term capital gains tax on the shares — which is 0%, 15%, or 20%, depending on your income — rather than income tax, which is often higher.


The Financial Institution of Your Choice

In a 401(k) plan, your employer will decide the 401(k) company holding your funds. By rolling over to an IRA, you'll be able to choose your preferred institution based on stability, trading technology, and financial services.


A Wider Array of Investment Opportunities

While some Columbia, IL businesses provide 401(k) plans that permit a wide range of investment options, you will generally have much more flexibility in 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

Consolidate Your 401(k) Plans

If you have several 401(k) plans spread across multiple former employers, 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. You could also see greater long-term gains.


Keep Contributing 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. If you roll the funds out of your old employer's plan, you continue adding more money over time.

The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have more than two decades of experience helping both individuals and business owners in Columbia, IL with a variety of 401(k) services. When you hire Correct Capital, we'll help you navigate 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 Columbia, IL

Each of our client's financial situation is unique, and your Columbia, IL retirement planners at Correct Capital may recommend that your investments should be left in a 401(k) plan; either your an old plan or rolling them over into a new one. Some reasons to choose a 401(k) plan instead of an IRA include:

  • If you like the benefits of your current 401(k) plan. 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). If the account doesn't perform as well or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
  • No early withdrawal penalties if you are 55. While you can begin taking out savings without a penalty from both a 401(k) or IRA at 59½, the threshold in a 401(k) for a 10% early withdrawal fee is 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 advisable, if you are in a situation where you need to take out a loan from your retirement savings, it is important to mention 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 stick with a 401(k) your employer will match your contributions.

Take a look at some of the other services we offer in Columbia, IL:

Rollover 401(k) Columbia, IL | 401(k) Management | Financial Advisors | Retirement Planning Near Columbia

Rollover 401(k) in Columbia, 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 nearly a century of combined experience aiding Columbia, IL individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we have a legal and ethical imperative to oversee your account in a way that benefits you and only you. As an independent firm, we will always be honest and unbiased, and we are not bound to only offer you limited investment opportunities.

Reach out to us today at 877-930-4015 or contact us online to schedule an appointment with one of our qualified 401(k) experts and retirement consultants today.

Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer