Rollover 401(k) in Oakville, MO
Rollover 401(k) in Oakville, MO. Moving to a new job in Oakville, MO is exciting, but it can also create uncertainty about the best way to manage your existing 401(k). Many Oakville, MO residents don't have the time, knowledge, or interest to oversee 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 financial planners will help you determine what makes the most sense for you. For rollover 401(k) counseling in Oakville, MO, reach out to us today at 877-930-4015 or contact us online.
Rollover 401(k) Options in Oakville, MO
Typically, you have four options when considering whether to roll over your 401(k). A experienced Oakville, 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, we may advise to:
- Keep your 401(k) with your old employer;
- Roll over your 401(k) to your new employer's 401(k);
- Roll over your 401(k) into a Traditional IRA or Roth IRA;
- Cash out your 401(k).
Cashing out should only be considered if you need funds quickly. Your previous employer would be obligated to withhold 20% of the savings in order to pay taxes on it. You may also face a 10% early withdrawal penalty from the IRS, and you would potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of your savings.
It is important to mention that businesses in Oakville, MO are allowed to make you move the money if your account has less than $5,000 in it. Additionally, they may be able to cash out your account if it has less than $1,000.
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Benefits to Rolling Over a 401(k) into an IRA in Oakville, MO
Your Oakville, MO financial advisors at Correct Capital may recommend rolling over your 401(k) into an Individual Retirement Account (IRA). This is beneficial for several different reasons:
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 cost basis and current value of shares of employer stock in your retirement account. If you won shares of your previous company in your 401(k), you can transfer that portion of your account into a standard brokerage account, and roll the remainder to an IRA. The advantage of this is that you may pay long term capital gains tax on your company stock — which is usually 15% but can go up to 20% for people with high-income — instead of income tax, which is often higher.
The Financial Institution of Your Choice
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 institution based on stability, trading technology, and financial services.
More of Investment Options
While some Oakville, MO employers offer 401(k) plans with few limitations on your investment options, 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:
- Shares
- Bonds
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
- Annuities
Combine Your 401(k) Plans
If you change jobs frequently, it could be incredibly helpful to incorporate all of your savings into one account. That will make it easier to track the performance of your funds and managing them will be more streamlined. You could also see greater long-term gains.
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 will be able to supplement your savings.
The financial advisors of Correct Capital will help you decide if a 401(k) rollover is the best option for you. We have more than 20 years of experience assisting both individuals and families and business owners in Oakville, MO with numerous 401(k) services. When you hire Correct Capital, we'll help you navigate special considerations, such as what type of account makes the most sense for your time horizon.
When Not to Roll Over Your 401(k) into an IRA in Oakville, MO
Depending on your time horizon and other considerations your Oakville, MO retirement planners at Correct Capital may advise that your savings should be left in a 401(k) plan; whether that be your previous employer's or your new one. Some reasons to stick with a 401(k) plan over an IRA include:
- If you like the benefits of your current 401(k) plan. If the fees aren't too high and you're getting strong returns, there may not be a good reason to roll over your 401(k). the fees change in the future or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
- No early withdrawal penalties if you are 55. While both 401(k)s and IRAs permit 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 earlier.
- 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 put matching contributions into your 401(k) account. 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.
See some of the other services we offer in Oakville, MO:
Rollover 401(k) in Oakville, MO | Correct Capital
At Correct Capital, we give all of our clients personalized attention and cater our services and advice to their current financial status, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years 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 act only in your best interested. As an independent firm, we will always be direct and objective, and there are no restrictions to the services or investment options we can recommend.
Reach out to us today at 877-930-4015 or contact us online to schedule an appointment with one of our knowledgeable 401(k) specialists and retirement consultants today.
