Rollover 401(k) in Cottleville, MO

Rollover 401(k) in Cottleville, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Cottleville, MO. While moving to a new job can be a welcome change, it can be hard to know what to do with the savings you have in your existing 401(k). Many Cottleville, MO residents don't have the time, expertise, or interest to manage multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) specialists and financial advisors will help you understand your options. For rollover 401(k) services in Cottleville, MO, reach out to us today at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in Cottleville, MO

Typically, there are four ways to approach your 401(k) rollover. A experienced Cottleville, 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, 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).

Taking out the cash value is not recommended unless you need money now. Your previous employer will have to withhold 20% of the savings in order to pay taxes 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 the account's value.

One last consideration to mention is that many businesses in Cottleville, MO obligate you to roll over the funds to an IRA or new 401(k) if your plan has less than $5,000 in it. Lastly, they may be able to cash out your account if the balance is less than $1,000.



Benefits to Rolling Over a 401(k) into an IRA in Cottleville, MO

Your Cottleville, MO financial advisors at Correct Capital may advise rolling over your 401(k) into an Individual Retirement Account (IRA). 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 current value of company stock in your 401(k) plan. If you won shares of your previous company in your 401(k), you can transfer that portion of your account into a standard brokerage account, and roll the other funds to an IRA. This way, you may pay long term capital gains tax on the shares — which is usually 15% but can go up to 20% for people with high-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. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll have your pick of custodians based on stability, trading technology, and financial services.


A Wider Array of Investment Options

While some Cottleville, MO businesses provide 401(k) plans with few limitations on your investment options, 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 Savings Accounts

If you have several 401(k) plans spread across multiple former employers, it may make the most sense to merge the entirety of your retirement funds into one place. That will make it easier to track the performance of your funds and managing them will be more streamlined. You could also see greater long-term gains.


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 may be eligible to keep contributing to the plan you've picked out.

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 advising both individuals and families and business owners in Cottleville, MO with numerous 401(k) services. When you hire Correct Capital, we'll guide you through special considerations, such as whether a traditional or Roth IRA is best for you.

Why to Avoid a 401(k) Rollover in Cottleville, MO

Depending on how close you are to retirement and other factors your Cottleville, MO retirement planners at Correct Capital may recommend that your funds are best kept in a 401(k) account; 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 include:

  • 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 good reason to roll over your 401(k). 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 funds without a fee 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.
  • Loans from an IRA are not allowed. 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 know 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 while you are still working, it may make more sense to stick with a 401(k) to receive an employer match and keep your retirement assets in one place.

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

Rollover 401(k) Cottleville, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Cottleville

Rollover 401(k) in Cottleville, MO | 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 assisting Cottleville, 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 act only in your best interested. As an independent firm, we will always be direct and unbiased, and there are no restrictions to the services or investment opportunities we can recommend.

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

Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer