Rollover 401(k) in Jefferson County, MO

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

Rollover 401(k) in Jefferson County, MO. While moving to a new job can be a welcome new opportunity, it can also lead to uncertainty about the best way to manage your 401(k) account with your previous employer. Many Jefferson County, MO residents don't have the time, expertise, or interest to manage 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 retirement consultants will help you get the most out of your savings. For rollover 401(k) consulting in Jefferson County, MO, reach out to us today at 314-930-401K or contact us online.


Rollover 401(k) Options in Jefferson County, MO

Generally speaking, you have four options when considering whether to roll over your 401(k). A professional Jefferson County, MO financial advisor like those at Correct Capital will be able to look at your finances 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 your new employer's 401(k);
  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 not advisable unless you need money now. Your previous employer would be obligated to withhold 20% of the funds in order to pay taxes on it. Depending on your age, the IRS may also withhold a 20% early withdrawal penalty, and you would would be subject to federal, state, and local taxes. Meaning, you could lose the majority of the account's value.

One last consideration to mention is that businesses in Jefferson County, MO are allowed to make you move the money if your account has less than $5,000 in it. Furthermore, 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 Jefferson County, MO

Your Jefferson County, 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:


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 market value of company stock in your retirement plan. If part of your 401(k) includes company stock, you can transfer that difference into a standard brokerage account, and roll the rest of your 401(k) savings 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 savings in a 401(k), the money will be held by the 401(k) company your employer chooses. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll be able to choose your preferred institution based on how secure they are and the range of services they offer.


A Wider Range of Investment Opportunities

While some Jefferson County, MO employers offer 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:

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

Combine Your Savings Accounts

If you have various 401(k) plans with previous employers, there are many advantages to merging all of your savings into one place. 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. Sustained long-term growth may also be more attainable.


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. 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 guide you in your decision of what to do during a 401(k) rollover. We have more than 20 years of experience helping both individuals and business owners in Jefferson County, MO with comprehensive 401(k) services. When you meet with us, we'll guide you through important considerations, such as which type of savings plan fits best in your portfolio.

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

Each of our client's financial situation is unique, and your Jefferson County, MO retirement planners at Correct Capital may advise that your funds are better off 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 your current 401(k) plan works for you. If the fees are fair and the return on investment is good, 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.
  • Avoid early withdrawal fees if you are 55. While you can begin taking out funds 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. So, a 401(k) may be preferable if you would like to retire a few years early.
  • You cannot take a loan out of an IRA. While taking a loan from retirement savings isn't recommended, 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 an IRA would only include the money you put into it.

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

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

Rollover 401(k) in Jefferson County, 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 seven decades of combined experience assisting Jefferson County, MO individuals and families with 401(k) rollovers in addition to several other wealth management services. As fiduciary advisors, we have a legal and ethical imperative to act only in your best interested. As an independent firm, we will always be direct and unbiased, and there are no restrictions to the services or investment options we can recommend.

Give us a call today at 314-930-401K or contact us online to schedule an appointment with one of our qualified 401(k) specialists and financial planners today.

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