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. Starting a new job in Country Life Acres, MO is exciting, but it can be hard to know what to do with the savings you have in your existing 401(k). Many Country Life Acres, MO residents have found that enlisting the services of professional financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) specialists and retirement consultants will help you get the most out of your savings. For rollover 401(k) services in Country Life Acres, MO, reach out to us today at 314-930-401K or contact us online.
How You Can Approach Your Rollover 401(k) in Country Life Acres, MO
In general, there are four different things you can do with your 401(k) account with your old employer. A experienced Country Life Acres, MO financial advisor like those at Correct Capital will consider your finances 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).
Taking out the cash value should only be considered if you need funds quickly. Your previous employer would be required to take out 20% of the balance for tax purposed. Depending on how close you are to retirement, 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 potentially lose more than 50% of the funds.
One last consideration to note is that employers in Country Life Acres, MO are allowed to make you move the money if your account has less than $5,000 in it. Additionally, you may be required to cash out your plan if it has 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 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:
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 current value of shares of employer stock in your 401(k) plan. 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 0%, 15%, or 20%, depending on your income — rather than income tax, which is often higher.
Pick Your Own Custodian
When you opt to put your savings in a 401(k), the money will be held by the 401(k) company your employer chooses. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll be able to choose your preferred institution based on how secure they are and the range of services they offer.
More of Investment Options
While some Country Life Acres, MO employers provide 401(k) plans with few limitations on your investment options, you will generally have much more control over an IRA than you would in a 401(k) plan. In an IRA, you can invest in any number of assets, including:
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
Combine Your Savings Accounts
If you have multiple 401(k) plans with previous employers, it could be incredibly helpful to combine the funds from all your accounts into one account. That way, you much much more efficiently follow the growth of your funds 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 your money will still grow 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 decide if a 401(k) rollover is the best option for you. We have more than two decades of experience assisting both individuals and business owners in Country Life Acres, MO with a variety of 401(k) services. When you retain our services, we'll help you navigate important considerations, for instance whether a traditional or Roth IRA is best for you.
When to Avoid a 401(k) Rollover in Country Life Acres, MO
Every person's finances vary, and your Country Life Acres, MO retirement planners at Correct Capital may recommend that your investments are better off in a 401(k) plan; either your previous employer's or your new one. Some reasons to stick with a 401(k) plan instead of an IRA are:
- If your current 401(k) plan works for you. If the fees aren't too high and your savings are growing as you'd like them to, it may be advisable to keep your savings where they are. the fees change in the future 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 funds without a fee from both 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 need or want the money sooner.
- 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 an IRA.
- Your employer may match your 401(k) contributions. Employers may contribute a full or partial match into a 401(k), while you are the only contributor if you put your savings into an IRA.
Click on the links below to see some of the other services we offer in Country Life Acres, MO:
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
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 over 75 years of combined experience aiding Country Life Acres, MO individuals and families with 401(k) rollovers along with many other wealth management services. As fiduciary advisors, we are legally and ethically bound to manage your account in a way that benefits you and only you. As an independent firm, we will always be straightforward and unbiased, and there are no limitations to the services or investment options we can offer you.