Rollover 401(k) in Creve Coeur, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Creve Coeur, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with your 401(k) account with your previous employer. Many Creve Coeur, MO residents have found that enlisting the services of qualified financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) experts and financial advisors will help you determine what makes the most sense for you. For rollover 401(k) consulting in Creve Coeur, MO, give us a call at 314-930-401K or contact us online.
How You Can Approach Your Rollover 401(k) in Creve Coeur, MO
Generally speaking, you have four options when considering whether to roll over your 401(k). A qualified Creve Coeur, 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 a variety of factors, we may recommend to:
- Leave the savings in your former employer's 401(k) plan;
- Roll over your 401(k) to a plan with your new employer;
- 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 is only truly an option if you need funds quickly. Your previous employer would be required to withhold 20% of the savings for tax purposed. You may also face a 10% early withdrawal penalty from the IRS, and you would would be subject to federal, state, and local taxes. Meaning, you could lose the majority of the funds.
Another thing to note is that companies in Creve Coeur, MO are allowed to make you move the money 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 Creve Coeur, MO
Your Creve Coeur, 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 market 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 put that difference 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 is 0%, 15%, or 20%, depending on your income — rather than income tax, which is often higher.
The Financial Institution of Your Choice
In a 401(k) plan, you will not have any control over the 401(k) company that holds your savings. By rolling over to an IRA, you'll be able to choose your preferred institution based on how secure they are, the ease of their digital platforms, and the other services they offer.
A Wider Range of Investment Opportunities
While some Creve Coeur, MO businesses provide 401(k) plans that allow for a wide array of 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:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Consolidate Your 401(k) Plans
If you change jobs frequently, there are many advantages to merging all of your savings into one plan. That way, you much much more efficiently follow the performance of your funds and managing them will be more streamlined. It may also be the better option for long-term growth.
Keep Contributing 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. 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 help you decide if a 401(k) rollover is the best option for you. We have more than two decades of experience advising both individuals and business owners in Creve Coeur, MO with comprehensive 401(k) services. When you retain our services, we'll help you navigate important considerations, such as required minimum distribution model makes the most sense for you.
When to Avoid a 401(k) Rollover in Creve Coeur, MO
Depending on your time horizon and other considerations your Creve Coeur, MO retirement planners at Correct Capital may recommend that your savings should be left in a 401(k) account; whether that be your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan over an IRA are:
- If you like the benefits of your current 401(k) plan. If the fees are reasonable and the return on investment is good, it may make the most sense 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 retain the right to roll over the funds whenever you'd like.
- Avoid early withdrawal fees if you are 55. While you can begin taking out money without a penalty 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 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, you would only be able to do so if they are in a 401(k) plan.
- Your employer can put matching contributions into your 401(k) account. 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 keep contributing to your 401(k) to receive an employer match and keep your retirement assets in one place.
See some of the other services we offer in Creve Coeur, 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 Creve Coeur, 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 helping Creve Coeur, MO individuals and families with 401(k) rollovers along with a host of other wealth management services. As fiduciary advisors, we are legally and ethically required to oversee your account in a way that benefits you and only you. As an independent firm, we are free to be straightforward and unbiased, and there are no limitations to the services or investment options we can recommend.