Rollover 401(k) in Lake St. Louis, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Lake St. Louis, MO. Moving to a new job in Lake St. Louis, MO can lead to new opportunities, but it can be hard to know what to do with the savings you have in your existing 401(k). Many Lake St. Louis, 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 determine what makes the most sense for you. For rollover 401(k) services in Lake St. Louis, MO, give us a call at 877-930-4015 or contact us online.
How You Can Approach Your Rollover 401(k) in Lake St. Louis, MO
Generally speaking, there are four ways to approach your 401(k) rollover. A experienced Lake St. Louis, MO financial advisor like those at Correct Capital will be able to look at your finances and guide you towards what will work best for you. Depending on a variety of factors, it may be best to:
- Leave the savings in your former employer's 401(k) plan;
- Roll over your 401(k) to a plan with your new employer;
- 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 balance for tax purposed. You may also face a 10% early withdrawal penalty from the IRS, 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 employers in Lake St. Louis, 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 the balance is less than $1,000.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Benefits to Rolling Over a 401(k) into an IRA in Lake St. Louis, MO
Your Lake St. Louis, MO financial advisors at Correct Capital may recommend rolling over your 401(k) into an Individual Retirement Account (IRA). 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 cost basis and current value of shares of employer stock in your retirement plan. If you won shares of your previous company in your 401(k), you can transfer that difference into a standard brokerage account, and roll the remainder to an IRA. In doing so, 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 is often higher.
The Custodian of Your Choice
In a 401(k) plan, your employer will decide the 401(k) company holding your funds. By rolling over to an IRA, you'll be able to choose your preferred custodian based on how secure they are and the range of services they offer.
A Wider Array of Investment Options
While some Lake St. Louis, MO companies provide 401(k) plans with few limitations on your investment opportunities, you will generally have much more flexibility in an IRA than you would in a 401(k) plan. IRAs typically allow investment in almost any type of asset, including:
- Stocks
- Bonds
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
- Annuities
Consolidate Your 401(k) Plans
If you have various 401(k) plans with previous employers, there are many advantages to incorporating the funds from all your accounts into one account. In doing so, it won't be nearly as much of a hassle to track how your investments are performing and you will be able to manage them more directly. You could also see greater long-term gains.
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. 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 guide you in your decision of what to do during a 401(k) rollover. We have more than 20 years of experience assisting both individuals and business owners in Lake St. Louis, MO with A-Z 401(k) services. When you retain our services, we'll help you navigate important considerations, for instance which type of savings plan fits best in your portfolio.
Why Not to Roll Over Your 401(k) into an IRA in Lake St. Louis, MO
Each of our client's financial situation is unique, and your Lake St. Louis, MO retirement planners at Correct Capital may advise that your savings are better off in a 401(k) plan; whether that be your an old plan or rolling them over into a new one. Some reasons to choose a 401(k) plan over an IRA include:
- If you like the benefits of your current 401(k) plan. If the fees are reasonable and the return on investment is good, there may not be a great reason to roll over your 401(k). If the account doesn't perform as well or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
- Avoid early withdrawal fees if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 59½, the threshold in a 401(k) for a 10% early withdrawal fee is 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 advisable, 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 may match your 401(k) contributions. Employers may contribute a full 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 Lake St. Louis, MO:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
Rollover 401(k) in Lake St. Louis, MO | Correct Capital
At Correct Capital, we give all of our clients bespoke guidance and tailor our services and advice to their current financial status, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years of combined experience assisting Lake St. Louis, 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 manage your account in a way that benefits you and only you. As an independent firm, we are free to be straightforward and unbiased, and we are not bound to only offer you limited investment options.
Give us a call 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.