Rollover 401(k) in Oakland, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Oakland, MO. While moving to a new job can be a welcome change, it can be hard to know what to do with your 401(k) account with your previous employer. Many Oakland, MO residents don't have the time, financial literacy, or interest to oversee multiple retirement accounts or to carefully weigh their best options when considering a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) specialists and financial planners will help you get the most out of your savings. For rollover 401(k) services in Oakland, MO, give us a call at 314-930-401K or contact us online.
How You Can Approach Your Rollover 401(k) in Oakland, MO
Typically, you have four options when considering whether to roll over your 401(k). A experienced Oakland, MO financial advisor like those at Correct Capital will be able to look at your assets, savings, and 401(k) plan and help you determine which option is best for you. Depending on your current financial health and your time horizon, it may be best to:
- Leave the money 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;
- Take the cash value out of your 401(k).
Cashing out is not advisable unless you need money now. Your previous employer would be obligated to take out 20% of the balance to prepay the taxes you would owe on it. 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 your savings.
One last consideration to mention is that many businesses in Oakland, MO obligate you to roll over the funds to an IRA or new 401(k) if your account 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 Oakland, MO
Your Oakland, MO financial advisors at Correct Capital may suggest 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 cost basis and market value of company stock in your 401(k) plan. If you won shares of your previous company in your 401(k), you can transfer that increase in value into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. By separating your 401(k) into two accounts, you may pay long term capital gains tax on your company stock — which is 0%, 15%, or 20%, depending on your income — rather than income tax, which may be considerably more.
Pick Your Own Financial Institution
In a 401(k) plan, you will not have any control over the 401(k) company that holds your money. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll have your pick of institutions based on stability, trading technology, and financial services.
A Wider Range of Investment Options
While some Oakland, MO employers provide 401(k) plans that include a wide array of investment options, you will generally have much more flexibility in an IRA than you would in a 401(k) plan. In an IRA, you can invest in any number of assets, including:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Consolidate Your Savings Accounts
If you have several 401(k) plans spread across multiple former employers, it could be incredibly helpful to incorporate the funds from all your accounts into one plan. That way, you much much more efficiently follow how your investments are growing 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. If you roll the funds out of your old employer's plan, 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 more than 20 years of experience advising both individuals and business owners in Oakland, MO with numerous 401(k) services. When you hire Correct Capital, we'll walk you through important considerations, such as whether a traditional or Roth IRA is best for you.
Why to Avoid a 401(k) Rollover in Oakland, MO
Depending on how close you are to retirement and other considerations your Oakland, MO retirement planners at Correct Capital may recommend that your savings are better off in a 401(k) plan; either your previous employer's or your new one. Some reasons to choose 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, it may be your best option to keep your savings where they are. the fees change in the future or you change your mind for a different reason, you can still roll over your 401(k) at any time.
- Avoid 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. So, a 401(k) may be preferable if you would like to retire earlier.
- 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, 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 Oakland, 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 Oakland, 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 over 75 years of combined experience assisting Oakland, MO individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we are legally and ethically required to act only in your best interested. As an independent firm, we will always be direct and objective, and there are no limitations to the services or investment options we can offer you.