Rollover 401(k) in Concord, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Concord, MO. While moving to a new job can be a welcome change, it can be hard to know what to do with your existing 401(k). Many Concord, MO residents don't have the time, knowledge, or interest to manage multiple retirement accounts or to carefully weigh their best options when considering a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) specialists and retirement planners will help you understand your options. For rollover 401(k) counseling in Concord, MO, call us today at 314-930-401K or contact us online.
Rollover 401(k) Options in Concord, MO
Generally speaking, you have four options when considering whether to roll over your 401(k). A knowledgeable Concord, MO financial advisor like those at Correct Capital will analyze your assets, savings, and 401(k) plan and guide you towards what will work best for you. Depending on a variety of factors, we may recommend to:
- Leave the money 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).
The last option is not advisable unless you need money now. Your previous employer would be required to take out 20% of the balance to prepay the taxes you would owe on it. 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 your savings.
It is important to note that many companies in Concord, MO obligate you to move the funds in your 401(k) if your plan has less than $5,000 in it. Lastly, 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 Concord, MO
Your Concord, 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 original value and current value of shares of employer stock in your 401(k) account. If you won shares of your previous company in your 401(k), you can put that difference into a standard brokerage account, and roll the other funds to an IRA. In doing so, you may pay long term capital gains tax on the shares — which is 0%, 15%, or 20%, depending on your income — instead of income tax, which is often higher.
The Financial Institution of Your Choice
In a 401(k) plan, you will not have any control over the 401(k) company that holds your funds. By rolling over to an IRA, you'll have your pick of custodians based on stability, trading technology, and financial services.
More Diverse of Investment Opportunities
While some Concord, 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:
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
Consolidate Your Savings Accounts
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 place. That way, you much much more efficiently track how your investments are growing and you will be able to manage them more efficiently. It may also be the better option for long-term growth.
Continue Adding Money 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. By rolling over the funds into an IRA, you continue adding more money over time.
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 20 years of experience assisting both individuals and business owners in Concord, MO with numerous 401(k) services. When you retain our services, we'll help you navigate special considerations, such as what type of account makes the most sense for your time horizon.
Why Not to Roll Over Your 401(k) into an IRA in Concord, MO
Each of our client's financial situation is unique, and your Concord, MO retirement planners at Correct Capital may advise that your savings are better off in a 401(k) account; either your previous employer's or your new one. Some reasons to stick with a 401(k) plan instead of an IRA include:
- If you like the benefits of your current 401(k) plan. If the fees are fair and the return on investment is good, it may be advisable to keep your savings where they are. If the account stops giving you strong returns or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
- Avoid early withdrawal penalties if you are 55. While you can begin taking out savings without a penalty 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'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, 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) account. Employers may contribute a full 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 Concord, 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 Concord, MO | Correct Capital
At Correct Capital, we treat each client individually and get to know them so we can help them reach their goals. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience helping Concord, MO individuals and families with 401(k) rollovers along with a host of other 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 straightforward and unbiased, and we are not bound to only offer you limited investment options.