Rollover 401(k) in Ellisville, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Ellisville, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with your existing 401(k). Many Ellisville, MO residents don't have the time, expertise, or interest to oversee multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our experienced team of 401(k) specialists and financial advisors will help you understand your options. For rollover 401(k) counseling in Ellisville, MO, call us today at 314-930-401K or contact us online.
What You Can Do With Your Rollover 401(k) in Ellisville, MO
Generally speaking, there are four different things you can do with your 401(k) account with your old employer. A qualified Ellisville, MO financial advisor like those at Correct Capital will analyze your finances and help you decide which option is best for you. Depending on your current financial health and your time horizon, it may be best to:
- Keep your 401(k) with your old employer;
- 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).
Cashing out is not recommended unless you need money now. Your previous employer will have to take out 20% of the savings for tax purposed. Depending on your age, 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 the funds.
It is important to mention that companies in Ellisville, MO are allowed to make you move the money if your plan has less than $5,000 in it. Additionally, they may be able to cash out your account if it has less than $1,000.
Benefits to Rolling Over a 401(k) into an IRA in Ellisville, MO
Your Ellisville, MO financial advisors at Correct Capital may suggest rolling over your 401(k) into an Individual Retirement Account (IRA). 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 company stock in your retirement account. If part of your 401(k) includes company stock, you can transfer that difference into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. The advantage of this is that you may pay long term capital gains tax on your company stock — which caps out at 20% for the highest earners — rather than income tax, which is often higher.
The Custodian of Your Choice
When you opt to put your savings in a 401(k), your employer will decide the 401(k) company holding your funds. By rolling over to an IRA, you'll have your pick of institutions based on stability, trading technology, and financial services.
A Wider Array of Investment Options
While some Ellisville, MO companies offer 401(k) plans that include a wide array of investment options, IRAs typically offer an individual investor many more options than 401(k) plans. IRAs typically allow investment in almost any type of asset, including:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Consolidate Your 401(k) Plans
If you change jobs frequently, it could be incredibly helpful to merge the funds from all your accounts into one place. That way, you much much more efficiently track how your investments are growing 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. 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 understand if rolling over a 401(k) is right for you, and which type of rollover is preferred. We have over 20 years of experience assisting both individuals and families and business owners in Ellisville, MO with A-Z 401(k) services. When you retain our services, we'll walk you through important considerations, such as required minimum distribution model makes the most sense for you.
When Not to Roll Over Your 401(k) into an IRA in Ellisville, MO
Depending on how close you are to retirement and other factors your Ellisville, MO retirement planners at Correct Capital may recommend that your investments are best kept in a 401(k) plan; either your an old plan or rolling them over into a new one. Some reasons to choose a 401(k) plan rather than an IRA are:
- If your current 401(k) plan works for you. If the fees are reasonable and you're getting strong returns, there may not be a great reason to roll over your 401(k). If the account stops giving you strong returns or you change your mind for another reason, you can still roll over your 401(k) at any time.
- No 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 earlier.
- Loans from an IRA are not allowed. 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 either a Traditional or Roth IRA.
- Your employer can pay 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.
Click on the links below to see some of the other services we offer in Ellisville, 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 Ellisville, 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 Ellisville, MO individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we have a legal and moral imperative to manage your account in a way that benefits you and only you. As an independent firm, we will always be direct and unbiased, and we are not bound to only offer you limited investment opportunities.