Rollover 401(k) in Manchester, MO

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

Rollover 401(k) in Manchester, MO. Starting a new job in Manchester, MO is exciting, but it can also create confusion about the best way to manage the savings you have in your existing 401(k). Many Manchester, 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 retirement consultants will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) services in Manchester, MO, reach out to us today at 314-930-401K or contact us online.


What You Can Do With Your Rollover 401(k) in Manchester, MO

Generally speaking, there are four different things you can do with your 401(k) account with your old employer. A qualified Manchester, MO financial advisor like those at Correct Capital will be able to look at your financial situation and guide you towards your preferred option. Depending on a variety of factors, we may recommend to:

  1. Keep your 401(k) with your old employer;
  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).

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 funds for tax purposed. Depending on your age, the IRS may also take a 20% early withdrawal penalty, and you would potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of the account's value.

One last consideration to mention is that many businesses in Manchester, MO require you to move the funds in your 401(k) if your plan has less than $5,000 in it. Lastly, 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 Manchester, MO

Your Manchester, MO financial advisors at Correct Capital may advise rolling over your 401(k) into an Individual Retirement Account (IRA). 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 shares of employer stock in your 401(k) plan. If part of your 401(k) includes company stock, you can put that difference into a standard brokerage account, and roll the remainder 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 — instead of income tax, which is often higher.


Pick Your Own Custodian

When you opt to put your retirement funds in a 401(k), the money will be held by the 401(k) company your employer chooses. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll be able to choose your preferred custodian based on stability, trading technology, and financial services.


A Wider Array of Investment Options

While some Manchester, MO businesses provide 401(k) plans with few limitations on your investment opportunities, 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
  • 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 combining the funds from all your accounts into one account. That way, you much much more efficiently track how your investments 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 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 over two decades of experience advising both individuals and business owners in Manchester, MO with numerous 401(k) services. When you retain our services, we'll guide you through special considerations, such as which type of savings plan fits best in your portfolio.

Why Not to Roll Over Your 401(k) into an IRA in Manchester, MO

Each of our client's financial situation is unique, and your Manchester, MO retirement planners at Correct Capital may advise that your funds should be left in a 401(k) plan; either your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan rather than an IRA include:

  • If you like the benefits of your current 401(k) plan. If the fees are fair and your savings are growing as you'd like them to, there may not be a good reason to roll over your 401(k). 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 penalties if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 59½, you will not face a 10% early withdrawal fee taking money out of a 401(k) once you have turned 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 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 note 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 an IRA would only include the money you put into it.

Click on the links below to see some of the other services we offer in Manchester, MO:

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

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

At Correct Capital, we treat each client individually and get to know them so we can help them realize their objectives. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience aiding Manchester, MO individuals and families with 401(k) rollovers as part of our comprehensive 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 straightforward and unbiased, and there are no limitations to the services or investment options we can offer you.

Reach out to us today at 314-930-401K or contact us online to schedule an appointment with one of our experienced 401(k) specialists and retirement consultants today.

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