Rollover 401(k) in Edwardsville, IL

Rollover 401(k) in Edwardsville, ILProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Edwardsville, IL. While moving to a new job can be a welcome new opportunity, it can also lead to uncertainty about the best way to manage the savings you have in your 401(k) account with your previous employer. Many Edwardsville, IL residents don't have the time, expertise, or interest to oversee multiple retirement accounts or to carefully weigh their best options when considering a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and financial advisors will help you understand your options. For rollover 401(k) advice in Edwardsville, IL, call us today at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in Edwardsville, IL

Typically, there are four different things you can do with your 401(k) plan with your old employer. A experienced Edwardsville, IL financial advisor like those at Correct Capital will consider your financial situation and help you determine which option is best for you. Depending on a variety of factors, we may recommend 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 balance 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 lose the majority of your savings.

One last consideration to note is that companies in Edwardsville, IL are allowed to make you move the money if your plan has less than $5,000 in it. Furthermore, 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 Edwardsville, IL

Your Edwardsville, IL financial advisors at Correct Capital may recommend 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 shares of employer stock in your retirement account. 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. By separating your 401(k) into two accounts, you may pay long term capital gains tax on your company stock — which is 0%, 15%, or 20%, depending on your income — instead of income tax, which may be considerably more.


The Custodian of Your Choice

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 have your pick of institutions based on how secure they are, the ease of their digital platforms, and the other services they offer.


More Diverse of Investment Options

While some Edwardsville, IL employers provide 401(k) plans that permit a wide range of 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:

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

Consolidate Your 401(k) Plans

If you change jobs frequently, there are many advantages to incorporating the entirety of your retirement funds into one plan. That will make it easier to track the growth of your funds and you will be able to manage them more efficiently. 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 determine 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 Edwardsville, IL with A-Z 401(k) services. When you hire Correct Capital, we'll guide you through important considerations, such as what type of account makes the most sense for your time horizon.

When Not to Roll Over Your 401(k) into an IRA in Edwardsville, IL

Each of our client's financial situation is unique, and your Edwardsville, IL retirement planners at Correct Capital may advise that your savings are best kept in a 401(k) plan; either your previous employer's or your new one. Some of the advantages of a 401(k) plan rather than an IRA are:

  • If your current 401(k) plan works for you. If the fees are fair and the return on investment is good, there may not be a great reason to roll over your 401(k). If the account stops performing or you change your mind for another reason, you can still roll over your 401(k) at any time.
  • No early withdrawal penalties if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 59½, you will not face 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.
  • 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. 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 stick with a 401(k) your employer will match your contributions.

Take a look at some of the other services we offer in Edwardsville, IL:

Rollover 401(k) Edwardsville, IL | 401(k) Management | Financial Advisors | Retirement Planning Near Edwardsville

Rollover 401(k) in Edwardsville, IL | Correct Capital

At Correct Capital, we give all of our clients bespoke attention and tailor our services and advice to their current financial status, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience helping Edwardsville, IL individuals and families with 401(k) rollovers along with a host of other wealth management services. As fiduciary advisors, we have a legal and moral obligation to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we will always be direct and objective, and we are not bound to only offer you limited investment opportunities.

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

Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer