Rollover 401(k) in Country Life Acres, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Country Life Acres, MO. While moving to a new job can be a welcome new opportunity, it can also lead to confusion about the best way to handle the savings you have in your 401(k) account with your previous employer. Many Country Life Acres, MO residents don't have the time, financial literacy, or interest to oversee multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and financial advisors will help you determine what makes the most sense for you. For rollover 401(k) services in Country Life Acres, MO, call us today at 314-930-401K or contact us online.
How You Can Approach Your Rollover 401(k) in Country Life Acres, MO
Typically, you have four options when considering whether to roll over your 401(k). A knowledgeable Country Life Acres, MO financial advisor like those at Correct Capital will be able to look at your financial situation and guide you towards your preferred option. Depending on your specific circumstances, it may be best to:
- Leave the money in your former employer's 401(k) plan;
- 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).
Cashing out is not advisable unless you need money now. Your previous employer would be required to take out 20% of the balance for tax purposed. 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. Meaning, you could potentially lose more than 50% of the account's value.
Another thing to mention is that many employers in Country Life Acres, 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, 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 Country Life Acres, MO
Your Country Life Acres, MO financial advisors at Correct Capital may suggest rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of benefits 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 increase in value between the original value and market value of company stock in your retirement account. If part of your 401(k) includes company stock, you can transfer that portion of your account into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. In doing so, 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.
Pick Your Own Financial Institution
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 money. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll have your pick of institutions based on stability, trading technology, and financial services.
A Wider Range of Investment Opportunities
While some Country Life Acres, MO businesses offer 401(k) plans that include a wide array of investment options, most retirement planners find that IRAs offer more control and flexibility than employer-limited 401(k) plans. IRAs typically allow investment in almost any type of asset, including:
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
Consolidate Your 401(k) Plans
If you change jobs frequently, it may make the most sense to combine all of your savings into one place. That will make it easier to track how your investments are growing and managing them will be more streamlined. It may also be the better option for long-term growth.
Continue Adding Money to Your Accounts
While you can still reap the benefits of the investments and savings that are already there, you won't be able to add funds to a 401(k) plan with your previous employer. By rolling over the funds into an IRA, you continue adding more money over time.
The financial advisors of Correct Capital will help you determine if a 401(k) rollover is the best option for you. We have over 20 years of experience helping both individuals and business owners in Country Life Acres, MO with a variety of 401(k) services. When you meet with us, we'll walk you through important considerations, for instance which type of savings plan fits best in your portfolio.
Why to Avoid a 401(k) Rollover in Country Life Acres, MO
Depending on your time horizon and other considerations your Country Life Acres, MO retirement planners at Correct Capital may recommend that your investments are best kept in a 401(k) account; either 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 are:
- If your current 401(k) plan works for you. If the fees aren't too high and you're getting strong returns, it may be advisable to keep your savings where they are. If the account stops performing or you change your mind for a different reason, you can still roll over your 401(k) at any time.
- Avoid 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, you will not have to pay a 10% early withdrawal fee taking money out of a 401(k) once you have turned 55. So, a 401(k) may be preferable if you would like to retire earlier.
- 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, you would only be able to do so if they are in a 401(k) plan.
- 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 keep contributing to your 401(k) your employer will match your contributions.
See some of the other services we offer in Country Life Acres, 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 Country Life Acres, MO | Correct Capital
At Correct Capital, we treat each client individually and get to know them so we can help them reach their objectives. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience assisting Country Life Acres, 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 objective, and there are no limitations to the services or investment opportunities we can recommend.