Rollover 401(k) in Fairview Heights, IL

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Rollover 401(k) in Fairview Heights, IL. Moving to a new job in Fairview Heights, IL can lead to new opportunities, but it can also create uncertainty about the best way to manage your 401(k) account with your previous employer. Many Fairview Heights, IL 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 retirement planners will help you determine what makes the most sense for you. For rollover 401(k) services in Fairview Heights, IL, reach out to us today at 877-930-4015 or contact us online.


Rollover 401(k) Options in Fairview Heights, IL

Typically, there are four different things you can do with your 401(k) plan with your old employer. A professional Fairview Heights, IL financial advisor like those at Correct Capital will be able to look at your assets, savings, and 401(k) plan and help you determine which option is best for you. Depending on your current financial health and your time horizon, 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. Cash out your 401(k).

The last option should only be considered if you need funds quickly. Your previous employer will have to withhold 20% of the savings for tax purposed. Depending on your age, the IRS may also take a 20% early withdrawal penalty, and you would potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of the funds.

Another thing to mention is that many companies in Fairview Heights, IL obligate you to roll over the funds to an IRA or new 401(k) if your plan has less than $5,000 in it. Furthermore, you may be required to cash out your plan if the balance is less than $1,000.




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Benefits to Rolling Over a 401(k) into an IRA in Fairview Heights, IL

Your Fairview Heights, IL financial advisors at Correct Capital may counsel that rolling over your 401(k) funds into a Traditional or Roth IRA is your best option. 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 part of your 401(k) includes company stock, you can put that difference into a standard brokerage account, and roll the other funds to an IRA. This way, you may pay long term capital gains tax on your company stock — which caps out at 20% for the highest earners — instead of income tax, which may be significantly more.


Pick Your Own Financial Institution

In a 401(k) plan, your employer will decide the 401(k) company holding your funds. 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 Opportunities

While some Fairview Heights, IL employers offer 401(k) plans that include a wide array 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:

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

Combine Your 401(k) Plans

If you have multiple 401(k) plans with previous employers, it could be incredibly helpful to incorporate all of your savings into one account. In doing so, it won't be nearly as much of a hassle to track 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 you will still see return on your investments 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 may be eligible to keep contributing to the plan you've picked out.

The financial advisors of Correct Capital will help you decide if a 401(k) rollover is the best option for you. We have over two decades of experience assisting both individuals and business owners in Fairview Heights, IL with a variety of 401(k) services. When you retain our services, we'll help you navigate special considerations, such as required minimum distribution model makes the most sense for you.

Why Not to Roll Over Your 401(k) into an IRA in Fairview Heights, IL

Each of our client's financial situation is unique, and your Fairview Heights, IL retirement planners at Correct Capital may recommend that your savings are better off in a 401(k) account; whether that be your an old plan or rolling them over into a new one. Some reasons to stick with a 401(k) plan over an IRA include:

  • If your current 401(k) plan works for you. If the fees are reasonable and the return on investment is good, there may not be a great reason to roll over your 401(k). 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 allow for withdrawals when you are 59½, a 401(k) does not include a 10% early withdrawal fee if you are 55. A 401(k) may be best if you're considering early retirement.
  • Loans from an IRA are not allowed. 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 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.

Check out some of the other services we offer in Fairview Heights, IL:

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

Rollover 401(k) in Fairview Heights, IL | Correct Capital

At Correct Capital, we give all of our clients bespoke guidance and cater our services and advice to their current financial status, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience assisting Fairview Heights, IL 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 will always be direct and objective, and there are no limitations to the services or investment options we can recommend.

Reach out to us today at 877-930-4015 or contact us online to schedule an appointment with one of our professional 401(k) specialists and retirement consultants today.

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