Rollover 401(k) in Huntleigh, MO
Rollover 401(k) in Huntleigh, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with the savings you have in your existing 401(k). Many Huntleigh, 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 dedicated team of 401(k) specialists and retirement consultants will help you get the most out of your savings. For rollover 401(k) services in Huntleigh, MO, reach out to us today at 877-930-4015 or contact us online.
What You Can Do With Your Rollover 401(k) in Huntleigh, MO
Typically, there are four ways to approach your 401(k) rollover. A experienced Huntleigh, 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, we may recommend to:
- Leave the savings in your former employer's 401(k) plan;
- Roll over your 401(k) to your new employer's 401(k);
- Roll over your 401(k) into a Traditional IRA or Roth IRA;
- Cash out your 401(k).
The last option is not advisable unless you need money now. Your previous employer will have to withhold 20% of the balance in order to pay taxes on it. You may also face a 10% early withdrawal penalty from the IRS, and you would potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of your savings.
It is important to mention that employers in Huntleigh, MO are allowed to make you move the money if your plan has less than $5,000 in it. Lastly, 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 Huntleigh, MO
Your Huntleigh, MO financial advisors at Correct Capital may recommend rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of advantages to this strategy:
Pay Less in Taxes With Special Rules if You Have Publicly Traded Company Stock in Your 401(k)
Net unrealized appreciation (NUA) is the increase in value between the cost basis and market value of company stock in your 401(k) plan. If part of your 401(k) includes company stock, you can transfer that increase in value into a standard brokerage account, and roll the remainder to an IRA. This way, 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 may be substantially more.
Pick Your Own Financial Institution
When you opt to put your retirement funds in a 401(k), you will not have any control over the 401(k) company that holds your money. 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 and the range of services they offer.
More Diverse of Investment Options
While some Huntleigh, MO companies provide 401(k) plans with few limitations on your investment options, most retirement planners find that IRAs offer more control and flexibility than employer-limited 401(k) plans. In an IRA, you can invest in any number of assets, including:
- Stocks
- Bonds
- Certificates of deposit
- Mutual funds
- ETFs
- Real estate investment trusts
- Annuities
Consolidate Your Savings Accounts
If you have several 401(k) plans spread across multiple former employers, it may make the most sense to merge the funds from all your accounts into one account. That way, you much much more efficiently track how your savings are performing and managing them will be more streamlined. 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. By rolling over the funds into an IRA, you continue adding more money over time.
The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have more than 20 years of experience assisting both individuals and business owners in Huntleigh, MO with A-Z 401(k) services. When you retain our services, we'll guide you through important considerations, such as what type of account makes the most sense for your time horizon.
Why Not to Roll Over Your 401(k) into an IRA in Huntleigh, MO
Each of our client's financial situation is unique, and your Huntleigh, MO retirement planners at Correct Capital may recommend that your investments are best kept in a 401(k) plan; whether that be your previous employer's or your new one. Some reasons to stick with a 401(k) plan rather than an IRA are:
- If your current 401(k) plan works for you. If the fees aren't exorbitant and your savings are growing as you'd like them to, it may make the most sense 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.
- No early withdrawal penalties if you are 55. While you can begin taking out savings without a penalty from either a 401(k) or IRA at 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.
- Loans from an IRA are not allowed. While typically not recommended, if you are in a situation where you need to take out a loan from your retirement savings, 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.
Check out some of the other services we offer in Huntleigh, MO:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
Rollover 401(k) in Huntleigh, 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 helping Huntleigh, MO individuals and families with 401(k) rollovers in addition to several other wealth management services. As fiduciary advisors, we are legally and ethically required to act only in your best interested. As an independent firm, we are free to be honest and unbiased, and we are not bound to only offer you limited investment options.
Call us today at 877-930-4015 or contact us online to schedule an appointment with one of our experienced 401(k) specialists and retirement planners today.
