Rollover 401(k) in Imperial, MO

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

Rollover 401(k) in Imperial, MO. Starting a new job in Imperial, MO is exciting, but it can also create confusion about the best way to handle your existing 401(k). Many Imperial, 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 experienced team of 401(k) specialists and financial planners will help you understand your options. For rollover 401(k) advice in Imperial, MO, reach out to us today at 314-930-401K or contact us online.


What You Can Do With Your Rollover 401(k) in Imperial, MO

In general, there are four ways to approach your 401(k) rollover. A knowledgeable Imperial, 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, we may recommend to:

  1. Leave the savings 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. Cash out your 401(k).

Cashing out is not advisable unless you need money now. Your previous employer would be obligated to take out 20% of the savings to prepay the taxes you would owe on it. You may also face a 10% early withdrawal penalty from the IRS, and you would also have to pay federal, state, and local taxes. Cashing out could leave you with less than half of your savings.

Another thing to note is that businesses in Imperial, MO are allowed to make you move the money 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.



Benefits to Rolling Over a 401(k) into an IRA in Imperial, MO

Your Imperial, MO financial advisors at Correct Capital may advise 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 original value and current value of shares of employer stock in your 401(k) account. If part of your 401(k) includes company stock, you can put that difference into a standard brokerage account, and roll the remainder to an IRA. The advantage of this is that you may pay long term capital gains tax on your company stock — which is 0%, 15%, or 20%, depending on your income — instead of income tax, which may be substantially more.


Pick Your Own Custodian

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 be able to choose your preferred custodian based on stability, trading technology, and financial services.


More of Investment Opportunities

While some Imperial, MO businesses provide 401(k) plans that permit a wide range of investment opportunities, you will generally have much more flexibility in an IRA than you would in a 401(k) plan. In an IRA, you can invest in any number of assets, including:

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

Consolidate Your 401(k) Plans

If you change jobs frequently, it could be incredibly helpful to incorporate all of your savings into one place. In doing so, it won't be nearly as much of a hassle to follow how your investments are performing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.


Keep Contributing 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 may be eligible to keep contributing to the plan you've picked out.

The financial advisors of Correct Capital will help you determine if a 401(k) rollover is the best option for you. We have over two decades of experience helping both individuals and families and business owners in Imperial, MO with numerous 401(k) services. When you retain our services, we'll walk you through important considerations, for instance which type of savings plan fits best in your portfolio.

Why to Avoid a 401(k) Rollover in Imperial, MO

Every person's finances vary, and your Imperial, MO retirement planners at Correct Capital may recommend that your funds should be left in a 401(k) account; either 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 you're getting strong returns, 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.
  • No early withdrawal penalties if you are 55. While you can begin taking out money without a penalty from both 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 earlier.
  • You cannot take a loan out of an IRA. 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) account. While some employers will allow you to roll money out of your 401(k) to an IRA before retirement, it may make more sense to keep contributing to your 401(k) your employer will match your contributions.

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

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

Rollover 401(k) in Imperial, MO | Correct Capital

At Correct Capital, we treat each client individually and get to know them so we can help them reach their objectives. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years of combined experience assisting Imperial, MO individuals and families with 401(k) rollovers along with a host of other 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 are free to be straightforward and objective, and we are not bound to only offer you limited investment options.

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

Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer