Rollover 401(k) in Manchester, MO

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Rollover 401(k) in Manchester, MO. Starting a new job in Manchester, MO can lead to new opportunities, but it can also create confusion about the best way to manage the savings you have in your 401(k) account with your previous employer. Many Manchester, MO residents don't have the time, knowledge, or interest to manage multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our experienced team of 401(k) specialists and retirement planners will help you understand your options. For rollover 401(k) services in Manchester, MO, reach out to us today at 877-930-4015 or contact us online.


Rollover 401(k) Options in Manchester, MO

In general, you have four options when considering whether to roll over your 401(k). A professional Manchester, MO financial advisor like those at Correct Capital will analyze your finances and guide you towards your preferred option. Depending on a variety of factors, 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. Cash out your 401(k).

Taking out the cash value is not recommended unless you need money now. Your previous employer would be required 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. That means you might not even see half of your savings.

It is important to note that employers in Manchester, 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.


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Benefits to Rolling Over a 401(k) into an IRA in Manchester, MO

Your Manchester, 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 retirement plan. If you won shares of your previous company in your 401(k), you can put that difference into a standard brokerage account, and roll the other funds to an IRA. By separating your 401(k) into two accounts, 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.


The Financial Institution of Your Choice

In a 401(k) plan, you will not have any control over the 401(k) company that holds your funds. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll have your pick of custodians based on how secure they are, the ease of their digital platforms, and the other services they offer.


More Diverse of Investment Opportunities

While some Manchester, MO businesses offer 401(k) plans with few limitations on your investment options, IRAs typically offer an individual investor many more options than 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 401(k) Plans

If you have multiple 401(k) plans with previous employers, it may make the most sense to incorporate the entirety of your retirement funds into one account. That will make it easier to follow the growth of your funds 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 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 20 years of experience advising both individuals and business owners in Manchester, MO with A-Z 401(k) services. When you retain our services, we'll help you navigate important considerations, for instance how a 401(k) rollover will affect your tax planning.

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

Depending on how close you are to retirement and other considerations your Manchester, MO retirement planners at Correct Capital may advise that your funds 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 over an IRA include:

  • If your current 401(k) plan works for you. If the fees aren't exorbitant and you're getting strong returns, there may not be a great 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.
  • No early withdrawal fees if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 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 recommended, 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.

Check out 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 give all of our clients bespoke attention and tailor our services and advice to their current financial status, objectives, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience aiding Manchester, 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 ethical obligation to act only in your best interested. As an independent firm, we will always be direct and objective, and we are not bound to only offer you limited investment opportunities.

Call us today at 877-930-4015 or contact us online to schedule an appointment with one of our professional 401(k) specialists and retirement planners today.

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