Rollover 401(k) in Oakville, MO
Rollover 401(k) in Oakville, MO. While moving to a new job can be a welcome change, it can be hard to know what to do with your existing 401(k). Many Oakville, MO residents have found that enlisting the services of qualified financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our experienced team of 401(k) specialists and financial advisors will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) consulting in Oakville, MO, give us a call at 877-930-4015 or contact us online.
Rollover 401(k) Options in Oakville, MO
Generally speaking, there are four ways to approach your 401(k) rollover. A experienced Oakville, MO financial advisor like those at Correct Capital will analyze your financial situation and guide you towards what will work best for you. Depending on your current financial health and your time horizon, we may recommend 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;
- Cash out your 401(k).
The last option is not recommended unless you need money now. Your previous employer would be obligated to take out 20% of the funds for tax purposed. Depending on how close you are to retirement, the IRS may also withhold a 20% early withdrawal penalty, and you would would be subject to federal, state, and local taxes. Meaning, you could lose the majority of the funds.
It is important to mention that many employers in Oakville, MO obligate you to move the funds in your 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.
Benefits to Rolling Over a 401(k) into an IRA in Oakville, MO
Your Oakville, 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 advantages 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 cost basis and market value of shares of employer stock in your 401(k) account. If you won shares of your previous company in your 401(k), you can put that portion of your account into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. In doing so, 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 — rather than income tax, which is often higher.
Pick Your Own Financial Institution
In a 401(k) plan, your employer will decide the 401(k) company holding your funds. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll be able to choose your preferred custodian based on how secure they are, the ease of their digital platforms, and the other services they offer.
A Wider Array of Investment Opportunities
While some Oakville, MO businesses provide 401(k) plans that include a wide array of investment opportunities, most retirement planners find that IRAs offer more control and flexibility than employer-limited 401(k) plans. In an IRA, you can invest in any number of assets, including:
- Stocks
- Bonds
- Certificates of deposit
- Mutual funds
- ETFs
- Real estate investment trusts
- Annuities
Combine Your 401(k) Plans
If you change jobs frequently, it may make the most sense to combine the funds from all your accounts into one place. In doing so, it won't be nearly as much of a hassle to follow how your investments are growing and managing them will be more streamlined. It may also be the better option for long-term growth.
Continue Adding Money 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 guide you in your decision of what to do during a 401(k) rollover. We have more than two decades of experience helping both individuals and business owners in Oakville, MO with A-Z 401(k) services. When you hire Correct Capital, we'll help you navigate important considerations, such as how a 401(k) rollover will affect your tax planning.
When Not to Roll Over Your 401(k) into an IRA in Oakville, MO
Every person's finances vary, and your Oakville, MO retirement planners at Correct Capital may recommend that your funds are better off in a 401(k) account; whether that be your previous employer's or your new one. Some of the advantages of a 401(k) plan instead of an IRA are:
- If you like the benefits of your current 401(k) plan. If the fees aren't exorbitant 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 can still roll over your 401(k) at any time.
- Avoid early withdrawal penalties if you are 55. While you can begin taking out savings without a penalty from either a 401(k) or IRA at 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 taking a loan from retirement savings isn't recommended, 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 full 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 Oakville, MO:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
Rollover 401(k) in Oakville, MO | Correct Capital
At Correct Capital, we treat each client individually and get to know them so we can help them reach their goals. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience assisting Oakville, 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 imperative to act only in your best interested. As an independent firm, we will always be straightforward and objective, and we are not bound to only offer you limited investment options.
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 consultants today.
