Rollover 401(k) in Glendale, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Glendale, MO. Starting a new job in Glendale, MO can lead to new opportunities, but it can also lead to uncertainty about the best way to handle the savings you have in your existing 401(k). Many Glendale, MO residents don't have the time, financial literacy, or interest to oversee multiple retirement accounts or to carefully weigh their best options when considering a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) experts and financial advisors will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) services in Glendale, MO, give us a call at 314-930-401K or contact us online.
Rollover 401(k) Options in Glendale, MO
In general, there are four different things you can do with your 401(k) account with your old employer. A knowledgeable Glendale, MO financial advisor like those at Correct Capital will consider your financial situation and guide you towards your preferred option. Depending on a variety of factors, it may be best to:
- Leave the money 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).
The last option 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. That means you might not even see half of your savings.
One last consideration to mention is that companies in Glendale, MO 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 Glendale, MO
Your Glendale, MO 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 difference between the original value and current value of shares of employer 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 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 is often higher.
Pick Your Own Financial Institution
In a 401(k) plan, the money will be held by the 401(k) company your employer chooses. By rolling over to an IRA, you'll have your pick of institutions based on stability, trading technology, and financial services.
More Diverse of Investment Opportunities
While some Glendale, MO businesses offer 401(k) plans with few limitations on your investment options, you will generally have much more control over an IRA than you would in a 401(k) plan. In an IRA, you can invest in any number of assets, including:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Consolidate Your Savings Accounts
If you change jobs frequently, it could be incredibly helpful to incorporate the entirety of your retirement funds into one account. In doing so, it won't be nearly as much of a hassle to track how your investments are growing and you will be able to manage them more efficiently. It may also be the better option for long-term growth.
Continue Adding Money 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 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 20 years of experience assisting both individuals and families and business owners in Glendale, MO with A-Z 401(k) services. When you retain our services, we'll help you navigate special considerations, for instance which type of savings plan fits best in your portfolio.
Why Not to Roll Over Your 401(k) into an IRA in Glendale, MO
Depending on your time horizon and other considerations your Glendale, MO retirement planners at Correct Capital may advise that your funds are better off in a 401(k) account; whether that be your previous employer's or your new one. Some reasons to choose a 401(k) plan instead of an IRA are:
- If your current 401(k) plan works for you. If the fees are fair and your savings are growing as you'd like them to, there may not be a good reason to roll over your 401(k). If the account stops giving you strong returns or you change your mind for another reason, you retain the right to roll over the funds whenever you'd like.
- Avoid early withdrawal fees if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 59½, a 401(k) does not include a 10% early withdrawal fee if you are 55. So, a 401(k) may be preferable if you would like to retire a few years early.
- 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 note that you cannot take a loan out of an IRA.
- Your employer can pay matching contributions into your 401(k) plan. 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 Glendale, 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 Glendale, MO | Correct Capital
At Correct Capital, we treat each client individually and get to know them so we can help them realize their objectives. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience assisting Glendale, MO individuals and families with 401(k) rollovers along with many other wealth management services. As fiduciary advisors, we have a legal and moral imperative to act only in your best interested. As an independent firm, we are free to be straightforward and objective, and there are no limitations to the services or investment opportunities we can recommend.