Rollover 401(k) in Ladue, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Ladue, MO. Starting a new job in Ladue, MO is exciting, but it can also lead to confusion about the best way to handle your existing 401(k). Many Ladue, 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 experienced team of 401(k) specialists and retirement consultants will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) consulting in Ladue, MO, give us a call at 314-930-401K or contact us online.
What You Can Do With Your Rollover 401(k) in Ladue, MO
Typically, there are four ways to approach your 401(k) rollover. A professional Ladue, MO financial advisor like those at Correct Capital will analyze your assets, savings, and 401(k) plan and help you determine which option is best for you. Depending on a variety of factors, it may be best to:
- Keep your 401(k) with your old employer;
- Roll over your 401(k) to a plan with your new employer;
- Roll over your 401(k) into a Traditional IRA or Roth IRA;
- Take the cash value out of 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 balance for tax purposed. You may also face a 10% early withdrawal penalty from the IRS, and you would potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of your savings.
It is important to note that many businesses in Ladue, MO obligate you to move the funds in your 401(k) if your account has less than $5,000 in it. Lastly, 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 Ladue, MO
Your Ladue, 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. This is beneficial for several different reasons:
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 original value and current value of company stock in your 401(k) plan. If part of your 401(k) includes company stock, you can transfer that increase in value 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 your company stock — which caps out at 20% for the highest earners — instead of income tax, which may be considerably more.
Pick Your Own Financial Institution
When you opt to put your retirement funds in a 401(k), 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 institution based on stability, trading technology, and financial services.
More Diverse of Investment Opportunities
While some Ladue, MO businesses provide 401(k) plans with few limitations on your investment options, IRAs typically offer an individual investor many more options than 401(k) plans. In an IRA, you can invest in any number of assets, including:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Consolidate Your 401(k) Plans
If you have several 401(k) plans spread across multiple former employers, it may make the most sense to merge all of your savings into one place. That way, you much much more efficiently track how your savings are growing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.
Keep Contributing 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 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 over two decades of experience helping both individuals and business owners in Ladue, MO with A-Z 401(k) services. When you retain our services, we'll help you navigate special considerations, for instance required minimum distribution model makes the most sense for you.
Why Not to Roll Over Your 401(k) into an IRA in Ladue, MO
Every person's finances vary, and your Ladue, MO retirement planners at Correct Capital may advise that your savings are better off in a 401(k) account; whether that be 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 your current 401(k) plan works for you. If the fees aren't too high and your savings are growing as you'd like them to, it may make the most sense to keep your savings where they are. If the account stops giving you strong returns or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
- No 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 need or want the money sooner.
- You cannot take a loan out of an IRA. While taking a loan from retirement savings should only be considered in certain circumstances, 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 dollar-for-dollar or partial match into a 401(k), while you are the only contributor if you put your savings into an IRA.
See some of the other services we offer in Ladue, MO:
- Wealth Management
- 401k Companies
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
Rollover 401(k) in Ladue, MO | Correct Capital
At Correct Capital, we treat each client individually and get to know them so we can help them achieve their objectives. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience helping Ladue, 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 imperative to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we are free to be direct and objective, and there are no limitations to the services or investment options we can offer you.