Rollover 401(k) in Imperial, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Imperial, MO. Moving to a new job in Imperial, MO is exciting, but it can also lead to uncertainty about the best way to handle the savings you have in your existing 401(k). Many Imperial, MO residents have found that enlisting the services of professional financial advisors is the best way to go about handling a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) specialists and financial advisors will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) counseling in Imperial, MO, call us today at 314-930-401K or contact us online.
Rollover 401(k) Options in Imperial, MO
In general, there are four different things you can do with your 401(k) account with your old employer. A professional Imperial, MO financial advisor like those at Correct Capital will analyze your finances and guide you towards your preferred option. Depending on your current financial health and your time horizon, we may recommend to:
- Keep your 401(k) with your old employer;
- 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).
Taking out the cash value is not recommended unless you need money now. Your previous employer would be obligated to withhold 20% of the savings in order to pay taxes 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. Meaning, you could lose the majority of the funds.
It is important to note that many employers in Imperial, MO obligate you to roll over the funds to an IRA or new 401(k) if your plan has less than $5,000 in it. Additionally, 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 Imperial, MO
Your Imperial, 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. There are a variety of advantages to this strategy:
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 cost basis and current value of company stock in your retirement account. If you won shares of your previous company in your 401(k), you can put that portion of your account 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 caps out at 20% for the highest earners — instead of income tax, which may be significantly more.
Pick Your Own Custodian
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 have your pick of custodians based on how secure they are, the ease of their digital platforms, and the other services they offer.
A Wider Array of Investment Opportunities
While some Imperial, MO companies offer 401(k) plans with few limitations on your investment opportunities, you will generally have much more control over an IRA than you would in a 401(k) plan. IRAs typically allow investment in almost any type of asset, including:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Consolidate Your 401(k) Plans
If you change jobs frequently, it may make the most sense to combine all of your savings into one place. That will make it easier to track how your savings are performing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.
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 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 20 years of experience assisting both individuals and families and business owners in Imperial, MO with a variety of 401(k) services. When you hire Correct Capital, we'll walk you through special considerations, such as what type of account makes the most sense for your time horizon.
When 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 savings are better off in a 401(k) account; either your previous employer's or your new one. Some reasons to choose a 401(k) plan rather than an IRA include:
- If your current 401(k) plan works for you. If the fees are reasonable and you're getting strong returns, there may not be a good 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 you can begin taking out money without a penalty from either a 401(k) or IRA at 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.
- You cannot take a loan out of an IRA. While typically not recommended, if you are in a situation where you need to take out a loan from your retirement savings, it is important to know that you cannot take a loan out of an IRA.
- Your employer can put matching contributions into your 401(k) account. Employers may contribute a full or partial match into a 401(k), while an IRA would only include the money you put into it.
Click on the links below to see some of the other services we offer in Imperial, MO:
- 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
- Retirement Calculator
- Retirement Planning
Rollover 401(k) in Imperial, MO | Correct Capital
At Correct Capital, we give all of our clients bespoke guidance and cater our services and advice to their current financial health, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years of combined experience aiding Imperial, MO individuals and families with 401(k) rollovers along with many other wealth management services. As fiduciary advisors, we have a legal and moral obligation to manage your account in a way that benefits you and only you. As an independent firm, we will always be straightforward and objective, and we are not bound to only offer you limited investment opportunities.