Rollover 401(k) in Kirkwood, MO

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

Rollover 401(k) in Kirkwood, MO. While moving to a new job can be a welcome change, it can be hard to know what to do with your existing 401(k). Many Kirkwood, MO residents don't have the time, financial literacy, or interest to oversee multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) specialists and retirement consultants will help you understand your options. For rollover 401(k) advice in Kirkwood, MO, give us a call at 314-930-401K or contact us online.


Rollover 401(k) Options in Kirkwood, MO

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

  1. Leave the money 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 recommended unless you need money now. Your previous employer would be obligated to take out 20% of the funds in order to pay taxes 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 potentially lose more than 50% of the account's value.

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

Your Kirkwood, 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 difference between the original value and current value of shares of employer 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 rest of your 401(k) savings to an IRA. This way, you may pay long term capital gains tax on your company stock — which is 0%, 15%, or 20%, depending on your income — rather than income tax, which is often higher.


The Financial Institution of Your Choice

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 be able to choose your preferred custodian based on how secure they are and the range of services they offer.


More Diverse of Investment Options

While some Kirkwood, MO employers provide 401(k) plans that allow for a wide array of investment options, most retirement planners find that IRAs offer more control and flexibility than employer-limited 401(k) plans. IRAs typically allow investment in almost any type of asset, including:

  • Stocks
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • ETFs
  • Real estate investment trusts
  • Annuities

Combine Your Savings Accounts

If you have various 401(k) plans with previous employers, there are many advantages to incorporating the entirety of your retirement funds into one place. That will make it easier to track how your savings are growing and managing them will be more streamlined. You could also see greater long-term gains.


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 will be able to supplement your savings.

The financial advisors of Correct Capital will help you understand if rolling over a 401(k) is right for you, and which type of rollover is preferred. We have more than 20 years of experience advising both individuals and business owners in Kirkwood, MO with numerous 401(k) services. When you meet with us, we'll help you navigate special considerations, for instance how a 401(k) rollover will affect your tax planning.

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

Every person's finances vary, and your Kirkwood, MO retirement planners at Correct Capital may recommend that your savings are best kept in a 401(k) plan; either your an old plan or rolling them over into a new one. Some reasons to choose a 401(k) plan instead of an IRA are:

  • If you like the benefits of your current 401(k) plan. If the fees are reasonable and your savings are growing as you'd like them to, it may be advisable to keep your savings where they are. the fees change in the future or you change your mind for another reason, you can still roll over your 401(k) at any time.
  • Avoid 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, 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 may match your 401(k) contributions. 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 Kirkwood, MO:

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

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

At Correct Capital, we treat each client individually and get to know them so we can help them achieve their goals. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience assisting Kirkwood, MO individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we have a legal and ethical imperative to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we will always be direct and objective, and we are not bound to only offer you limited investment opportunities.

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

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