Rollover 401(k) in Oakville, MO

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

Rollover 401(k) in Oakville, MO. Starting a new job in Oakville, MO can lead to new opportunities, but it can also create uncertainty about the best way to handle your 401(k) account with your previous employer. Many Oakville, 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 dedicated team of 401(k) specialists and financial planners will help you understand your options. For rollover 401(k) counseling in Oakville, MO, call us today at 314-930-401K or contact us online.


Rollover 401(k) Options in Oakville, MO

Typically, there are four different things you can do with your 401(k) plan with your old employer. A professional Oakville, MO financial advisor like those at Correct Capital will analyze your finances and guide you towards what will work best for you. Depending on your current financial health and your time horizon, it may be best to:

  1. Leave the savings in your former employer's 401(k) plan;
  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).

The last option is not recommended unless you need money now. Your previous employer will have to take out 20% of the funds to prepay the taxes you would owe 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. Meaning, you could lose the majority of the account's value.

It is important to note that businesses in Oakville, MO are allowed to make you move the money if your plan has less than $5,000 in it. Lastly, you may be required to cash out your plan if it has 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 suggest rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of advantages to this strategy:


Pay Less in Taxes With 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) plan. If part of your 401(k) includes company stock, you can transfer that increase in value into a standard brokerage account, and roll the other funds to an IRA. This way, you may pay long term capital gains tax on the shares — which is 0%, 15%, or 20%, depending on your income — rather than income tax, which is often higher.


The Custodian of Your Choice

In a 401(k) plan, your employer will decide the 401(k) company holding your funds. By rolling over to an IRA, you'll have your pick of custodians based on stability, trading technology, and financial services.


A Wider Range of Investment Opportunities

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

Consolidate Your 401(k) Plans

If you have various 401(k) plans with previous employers, there are many advantages to merging the funds from all your accounts into one account. That will make it easier to track how your savings are growing 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 will be able to supplement your savings.

The financial advisors of Correct Capital will help you determine if a 401(k) rollover is the best option for you. We have over two decades of experience assisting both individuals and business owners in Oakville, MO with a variety of 401(k) services. When you hire Correct Capital, we'll walk you through 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

Each of our client's financial situation is unique, and your Oakville, MO retirement planners at Correct Capital may advise that your savings are best kept in a 401(k) account; either your previous employer's or your new one. Some reasons to choose a 401(k) plan instead of an IRA include:

  • If you like the benefits of your current 401(k) plan. If the fees aren't exorbitant and the return on investment is good, it may make the most sense 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.
  • No 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, the threshold in a 401(k) for a 10% early withdrawal fee is 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 should only be considered in certain circumstances, you would only be able to do so if they are in a 401(k) plan.
  • Your employer can pay matching contributions into your 401(k) plan. While some employers will allow you to roll money out of your 401(k) to an IRA before retirement, it may make more sense to keep contributing to your 401(k) to receive an employer match and keep your retirement assets in one place.

Check out some of the other services we offer in Oakville, MO:

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

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 achieve their objectives. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience assisting Oakville, 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 will always be direct and objective, and there are no limitations to the services or investment options we can recommend.

Give us a call today at 314-930-401K or contact us online to schedule an appointment with one of our professional 401(k) specialists and financial advisors today.

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