Rollover 401(k) in Country Life Acres, MO
Rollover 401(k) in Country Life Acres, MO. Moving to a new job in Country Life Acres, MO can lead to new opportunities, but it can be hard to know what to do with your 401(k) account with your previous employer. Many Country Life Acres, 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) advice in Country Life Acres, MO, give us a call at 877-930-4015 or contact us online.
Rollover 401(k) Options in Country Life Acres, MO
In general, there are four ways to approach your 401(k) rollover. A professional Country Life Acres, MO financial advisor like those at Correct Capital will consider your finances and help you decide which option is best for you. Depending on a variety of factors, we may recommend 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;
- Take the cash value out of your 401(k).
The last option is only truly an option if you need funds quickly. Your previous employer will have to withhold 20% of the savings to prepay the taxes you would owe on it. You may also face a 10% early withdrawal penalty from the IRS, and you would potentially pay even more in federal, state, and local taxes. That means you might not even see 50% of your savings.
It is important to mention that many businesses in Country Life Acres, MO obligate you to move the funds in your 401(k) if your plan has less than $5,000 in it. Furthermore, they may be able to cash out your account if it has less than $1,000.
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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.
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Benefits to Rolling Over a 401(k) into an IRA in Country Life Acres, MO
Your Country Life Acres, 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:
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 original value and current value of company stock in your 401(k) account. If you won shares of your previous company in your 401(k), you can transfer that difference into a standard brokerage account, and roll the remainder to an IRA. In doing so, you may pay long term capital gains tax on your company stock — which is usually 15% but can go up to 20% for people with high-income — rather than income tax, which is often higher.
Pick Your Own Financial Institution
In a 401(k) plan, you will not have any control over the 401(k) company that holds your money. By rolling over to an IRA, you'll have your pick of institutions based on how secure they are, the ease of their digital platforms, and the other services they offer.
A Wider Array of Investment Options
While some Country Life Acres, MO employers offer 401(k) plans with few limitations on your investment opportunities, 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 Savings Accounts
If you have various 401(k) plans with previous employers, it could be incredibly helpful to merge the funds from all your accounts into one account. That will make it easier 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.
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 will be able to supplement your savings.
The financial advisors of Correct Capital will help you decide if a 401(k) rollover is the best option for you. We have over 20 years of experience assisting both individuals and families and business owners in Country Life Acres, MO with A-Z 401(k) services. When you hire Correct Capital, we'll help you navigate important considerations, such as how a 401(k) rollover will affect your tax planning.
When Not to Roll Over Your 401(k) into an IRA in Country Life Acres, MO
Depending on how close you are to retirement and other considerations your Country Life Acres, MO retirement planners at Correct Capital may advise that your funds are best kept in a 401(k) account; whether that be your previous employer's or your new one. Some reasons to stick with a 401(k) plan over an IRA include:
- If you like the benefits of your current 401(k) plan. If the fees aren't exorbitant and your savings are growing as you'd like them to, it may be your best option 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 can still roll over your 401(k) at any time.
- No early withdrawal penalties 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. So, a 401(k) may be preferable if you would like to retire a few years early.
- 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, it is important to know that you cannot take a loan out of an IRA.
- Your employer can put matching contributions into your 401(k) plan. 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 Country Life Acres, MO:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
Rollover 401(k) in Country Life Acres, MO | Correct Capital
At Correct Capital, we give all of our clients bespoke attention and tailor our services and advice to their current financial health, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years of combined experience assisting Country Life Acres, MO individuals and families with 401(k) rollovers as part of our comprehensive 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 honest and objective, and we are not bound to only offer you limited investment options.
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 financial advisors today.
