Rollover 401(k) in Dardenne Prairie, MO

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

Rollover 401(k) in Dardenne Prairie, MO. While moving to a new job can be a welcome change, it can also lead to uncertainty about the best way to manage your existing 401(k). Many Dardenne Prairie, MO residents have found that seeking the help 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 retirement consultants will help you understand your options. For rollover 401(k) services in Dardenne Prairie, MO, call us today at 314-930-401K or contact us online.


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

Typically, there are four ways to approach your 401(k) rollover. A knowledgeable Dardenne Prairie, MO financial advisor like those at Correct Capital will analyze your financial situation and guide you towards your preferred option. 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 your new employer's 401(k);
  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 advisable unless you need money now. Your previous employer would be obligated to take out 20% of the funds 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. Meaning, you could potentially lose more than 50% of your savings.

It is important to mention that many companies in Dardenne Prairie, 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, 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 Dardenne Prairie, MO

Your Dardenne Prairie, MO financial advisors at Correct Capital may advise rolling over your 401(k) into an Individual Retirement Account (IRA). This is beneficial for several different reasons:


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 401(k) account. If you won shares of your previous company in your 401(k), you can transfer that portion of your account into a standard brokerage account, and roll the remainder to an IRA. The advantage of this is that you may pay long term capital gains tax on the shares — which caps out at 20% for the highest earners — instead of income tax, which is often higher.


Pick Your Own Custodian

When you opt to put your retirement funds in a 401(k), the money will be held by the 401(k) company your employer chooses. By rolling over to an IRA, you'll be able to choose your preferred custodian based on stability, trading technology, and financial services.


A Wider Range of Investment Opportunities

While some Dardenne Prairie, MO employers offer 401(k) plans with few limitations on your investment opportunities, 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:

  • Shares
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • Exchange-traded funds
  • Real estate investment trusts
  • Annuities

Consolidate Your 401(k) Plans

If you have various 401(k) plans with previous employers, there are many advantages to merging the funds from all your accounts into one plan. In doing so, it won't be nearly as much of a hassle to track how your savings are growing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.


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 will be able to supplement your savings.

The financial advisors of Correct Capital will help you understand if rolling over a 401(k) is right for you, and which type of rollover is preferred. We have over two decades of experience helping both individuals and families and business owners in Dardenne Prairie, MO with A-Z 401(k) services. When you meet with us, we'll help you navigate special considerations, such as whether a traditional or Roth IRA is best for you.

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

Depending on how close you are to retirement and other factors your Dardenne Prairie, MO retirement planners at Correct Capital may advise that your investments 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 aren't too high and you're getting strong returns, it may be advisable 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.
  • Avoid early withdrawal fees if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 59½, the threshold in a 401(k) for a 10% early withdrawal fee is 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 taking a loan from retirement savings isn't recommended, you would only be able to do so if they are in a 401(k) plan.
  • 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.

See some of the other services we offer in Dardenne Prairie, MO:

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

Rollover 401(k) in Dardenne Prairie, 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 over 75 years of combined experience assisting Dardenne Prairie, MO individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we are legally and ethically obligated to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we are free to be honest and unbiased, and there are no restrictions to the services or investment opportunities we can offer you.

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

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