Rollover 401(k) in Jefferson County, MO
Rollover 401(k) in Jefferson County, MO. While moving to a new job can be a welcome new opportunity, it can also create uncertainty about the best way to handle your existing 401(k). Many Jefferson County, MO residents don't have the time, knowledge, or interest to oversee multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our experienced team of 401(k) specialists and retirement consultants will help you determine what makes the most sense for you. For rollover 401(k) services in Jefferson County, MO, give us a call at 877-930-4015 or contact us online.
How You Can Approach Your Rollover 401(k) in Jefferson County, MO
Typically, there are four different things you can do with your 401(k) plan with your old employer. A qualified Jefferson County, MO financial advisor like those at Correct Capital will analyze your financial situation and guide you towards what will work best for you. Depending on a variety of factors, we may advise 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).
Cashing out should only be considered if you need funds quickly. 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 would be subject to federal, state, and local taxes. Meaning, you could lose the majority of your savings.
It is important to mention that many businesses in Jefferson County, 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 the balance is 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 suggest rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of benefits 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 market value of company stock in your 401(k) plan. If part of your 401(k) includes company stock, you can transfer that difference into a standard brokerage account, and roll the other funds to an IRA. The advantage of this is that you may pay long term capital gains tax on the shares — which is 0%, 15%, or 20%, depending on your income — rather than income tax, which may be significantly more.
Pick Your Own Financial Institution
In a 401(k) plan, your employer will decide the 401(k) company holding your funds. By rolling over to an 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 Jefferson County, MO employers offer 401(k) plans that permit a wide range of investment options, IRAs typically offer an individual investor many more options than 401(k) plans. IRAs typically allow investment in almost any type of asset, including:
- Shares
- Bonds
- Certificates of deposit
- Mutual funds
- ETFs
- Real estate investment trusts
- Annuities
Consolidate Your 401(k) Plans
If you have several 401(k) plans spread across multiple former employers, it may make the most sense to incorporate all of your savings into one account. That will make it easier to track how your savings are performing and managing them will be more streamlined. It may also be the better option for long-term growth.
Keep Contributing to Your Accounts
While your money will still grow in you old 401(k) plan, you will no longer be able to contribute more savings to it. 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 two decades of experience advising both individuals and families and business owners in Jefferson County, MO with a variety of 401(k) services. When you meet with us, we'll guide you through special considerations, for instance which type of savings plan fits best in your portfolio.
When Not to Roll Over Your 401(k) into an IRA in Jefferson County, MO
Each of our client's financial situation is unique, and your Jefferson County, MO retirement planners at Correct Capital may recommend that your savings should be left in a 401(k) plan; either your previous employer's or your new one. Some of the advantages of a 401(k) plan instead of an IRA include:
- 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 be your best option to keep your savings where they are. If the account stops giving you strong returns or you change your mind for another reason, you can still roll over your 401(k) at any time.
- No early withdrawal fees if you are 55. While you can begin taking out savings 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 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 mention that you cannot take a loan out of either a Traditional or Roth IRA.
- 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 Jefferson County, 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 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 75 years of combined experience aiding Jefferson County, MO individuals and families with 401(k) rollovers along with a host of other wealth management services. As fiduciary advisors, we have a legal and moral obligation to oversee your account in a way that benefits you and only you. As an independent firm, we will always be straightforward and unbiased, and there are no restrictions to the services or investment options we can recommend.
Reach out to us today at 877-930-4015 or contact us online to schedule an appointment with one of our knowledgeable 401(k) experts and financial planners today.
