Rollover 401(k) in Crestwood, MO

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

Rollover 401(k) in Crestwood, MO. Starting a new job in Crestwood, MO can lead to new opportunities, but it can also create uncertainty about the best way to manage your existing 401(k). Many Crestwood, MO residents have found that seeking the help of qualified financial advisors is the best way to go about handling a 401(k) rollover. At Correct Capital, our experienced team of 401(k) specialists and financial planners will help you get the most out of your savings. For rollover 401(k) services in Crestwood, MO, call us today at 314-930-401K or contact us online.


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

Typically, you have four options when considering whether to roll over your 401(k). A qualified Crestwood, MO financial advisor like those at Correct Capital will consider your financial situation and guide you towards what will work best for you. Depending on your specific circumstances, it may be best to:

  1. Keep your 401(k) with your old employer;
  2. Roll over your 401(k) to a plan with your new employer;
  3. Roll over your 401(k) into a Traditional IRA or Roth IRA;
  4. Take the cash value out of your 401(k).

Taking out the cash value is not recommended unless you need money now. Your previous employer would be required 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 also have to pay federal, state, and local taxes. Cashing out could leave you with less than 50% of the account's value.

It is important to mention that many businesses in Crestwood, 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. Additionally, 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 Crestwood, MO

Your Crestwood, 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. 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 cost basis and current value of shares of employer stock in your 401(k) account. If part of your 401(k) includes company stock, 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 the shares — which caps out at 20% for the highest earners — rather than income tax, which may be substantially more.


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 be able to choose your preferred institution based on how secure they are and the range of services they offer.


A Wider Range of Investment Options

While some Crestwood, MO businesses provide 401(k) plans with few limitations on your 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:

  • Shares
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • ETFs
  • Real estate investment trusts
  • Annuities

Combine Your 401(k) Plans

If you change jobs frequently, it could be incredibly helpful to combine all of your savings into one plan. That will make it easier to track the performance of your funds and you will be able to manage them more efficiently. You could also see greater long-term gains.


Keep Contributing 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. If you roll the funds out of your old employer's plan, you continue adding more money over time.

The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have more than 20 years of experience advising both individuals and families and business owners in Crestwood, MO with numerous 401(k) services. When you hire Correct Capital, we'll guide you through special considerations, for instance what type of account makes the most sense for your time horizon.

When to Avoid a 401(k) Rollover in Crestwood, MO

Every person's finances vary, and your Crestwood, MO retirement planners at Correct Capital may advise that your funds are best kept in a 401(k) plan; whether that be your an old plan or rolling them over into a new one. Some of the advantages of 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 you're getting strong returns, it may be your best option to keep your savings where they are. You are not required to roll over a 401(k) immediately, so you are free to change your mind and transfer the funds at a later date.
  • No early withdrawal fees if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 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.
  • Loans from an IRA are not allowed. While taking a loan from retirement savings isn't advisable, it is important to know that you cannot take a loan out of an IRA.
  • Your employer may match your 401(k) contributions. Employers may contribute a dollar-for-dollar 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 Crestwood, MO:

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

Rollover 401(k) in Crestwood, 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 Crestwood, 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 act only in your best interested. As an independent firm, we will always be straightforward and unbiased, and we are not bound to only offer you limited investment options.

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

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