Rollover 401(k) in Huntleigh, MO

Rollover 401(k) in Huntleigh, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

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 401(k) account with your previous employer. Many Huntleigh, MO residents have found that enlisting the services of qualified financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and retirement consultants will help you determine what makes the most sense for you. For rollover 401(k) advice in Huntleigh, MO, call us today at 314-930-401K or contact us online.


Rollover 401(k) Options in Huntleigh, MO

Typically, there are four ways to approach your 401(k) rollover. A knowledgeable Huntleigh, MO financial advisor like those at Correct Capital will be able to look at your assets, savings, and 401(k) plan and guide you towards your preferred option. Depending on a variety of factors, it may be best to:

  1. Leave the funds in your former employer's 401(k) plan;
  2. Roll over your 401(k) to a plan with your new employer;
  3. Roll over your 401(k) into a Traditional IRA or Roth IRA;
  4. Take the cash value out of your 401(k).

The last option is only truly an option if you need funds quickly. Your previous employer would be obligated to take out 20% of the balance to prepay the taxes you would owe on it. Depending on how close you are to retirement, the IRS may also take a 20% early withdrawal penalty, and you would also have to pay federal, state, and local taxes. Cashing out could leave you with less than half of the funds.

It is important to mention that businesses in Huntleigh, MO are allowed to make you move the money if your plan has less than $5,000 in it. Additionally, you may be required to cash out your plan 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 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 company stock in your retirement plan. 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. In doing so, you may pay long term capital gains tax on the shares — which is usually 15% but can go up to 20% for people with high-income — rather than income tax, which is often higher.


The Custodian of Your Choice

When you opt to put your retirement funds in a 401(k), the money will be held by the 401(k) company your employer chooses. By rolling over to an IRA, you'll be able to choose your preferred institution based on how secure they are, the ease of their digital platforms, and the other services they offer.


A Wider Array of Investment Options

While some Huntleigh, MO businesses offer 401(k) plans with few limitations on your 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
  • ETFs
  • Real estate investment trusts
  • Annuities

Combine Your 401(k) Plans

If you have various 401(k) plans with previous employers, 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 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 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 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 over 20 years of experience helping both individuals and families and business owners in Huntleigh, 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 Huntleigh, MO

Every person's finances vary, and your Huntleigh, MO retirement planners at Correct Capital may advise that your funds are best kept in a 401(k) plan; whether that be your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan rather than an IRA include:

  • If you like the benefits of your current 401(k) plan. If the fees aren't exorbitant and the return on investment is good, there may not be a good reason to roll over your 401(k). If the account doesn't perform as well or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
  • Avoid early withdrawal penalties if you are 55. While you can begin taking out money without a fee from both a 401(k) or IRA at 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 taking a loan from retirement savings isn't advisable, you would only be able to do so if they are in a 401(k) plan.
  • Your employer can put matching contributions into your 401(k) plan. Employers may contribute a dollar-for-dollar or partial match into a 401(k), while you are the only contributor if you put your savings into an IRA.

Take a look at some of the other services we offer in Huntleigh, MO:

Rollover 401(k) Huntleigh, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Huntleigh

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 along with many other wealth management services. As fiduciary advisors, we are legally and ethically bound to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we will always be straightforward and unbiased, and there are no limitations to the services or investment options we can offer you.

Call us today at 314-930-401K or contact us online to schedule an appointment with one of our experienced 401(k) experts and financial planners today.

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