Rollover 401(k) in Lake St. Louis, MO

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Rollover 401(k) in Lake St. Louis, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Lake St. Louis, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with the savings you have in your 401(k) account with your previous employer. Many Lake St. Louis, MO residents don't have the time, knowledge, or interest to manage multiple retirement accounts or to carefully weigh their best options when considering a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and financial advisors will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) consulting in Lake St. Louis, MO, give us a call at 314-930-401K or contact us online.


Rollover 401(k) Options in Lake St. Louis, MO

Generally speaking, there are four different things you can do with your 401(k) account with your old employer. A qualified 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 your current financial health and your time horizon, we may advise to:

  1. Keep your 401(k) with your old employer;
  2. Roll over your 401(k) to a plan with your new employer;
  3. Roll over your 401(k) into a Traditional IRA or Roth IRA;
  4. Take the cash value out of your 401(k).

Taking out the cash value is only truly an option if you need funds quickly. Your previous employer will have to withhold 20% of the savings to prepay the taxes you would owe 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. Cashing out could leave you with less than 50% of the funds.

It is important to note that many companies in Lake St. Louis, 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. Lastly, you may be required to cash out your plan if the balance is less than $1,000.




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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 counsel that rolling over your 401(k) funds into a Traditional or Roth IRA is your best option. 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 difference between the original value and current value of company stock in your 401(k) account. If part of your 401(k) includes company stock, you can put that increase in value into a standard brokerage account, and roll the remainder to an IRA. This way, 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 — instead of 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. By rolling over to an IRA, you'll have your pick of custodians based on stability, trading technology, and financial services.


More Diverse of Investment Options

While some Lake St. Louis, MO companies provide 401(k) plans with few limitations on your investment options, you will generally have much more control over an IRA than you would in a 401(k) plan. In an IRA, you can invest in any number of assets, including:

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

Combine Your Savings Accounts

If you change jobs frequently, there are many advantages to combining the funds from all your accounts into one place. That way, you much much more efficiently follow the growth of your funds 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. By rolling over the funds into an IRA, you continue adding more money over time.

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 assisting both individuals and business owners in Lake St. Louis, MO with a variety of 401(k) services. When you retain our services, we'll help you navigate important considerations, such as what type of account makes the most sense for your time horizon.

Why to Avoid a 401(k) Rollover in Lake St. Louis, MO

Every person's finances vary, and your Lake St. Louis, MO retirement planners at Correct Capital may advise 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 rather than an IRA are:

  • If you like the benefits of your current 401(k) plan. 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. 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 money without a fee 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, it is important to mention 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.

Click on the links below to see some of the other services we offer in Lake St. Louis, MO:

Rollover 401(k) Lake St. Louis, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Lake St. Louis

Rollover 401(k) in Lake St. Louis, 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 75 years of combined experience assisting Lake St. Louis, MO individuals and families with 401(k) rollovers in addition to several other wealth management services. As fiduciary advisors, we have a legal and moral obligation to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we are free to be straightforward and unbiased, and we are not bound to only offer you limited investment opportunities.

Call us today at 314-930-401K or contact us online to schedule an appointment with one of our knowledgeable 401(k) experts and retirement planners today.

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