Rollover 401(k) in Olivette, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Olivette, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with your 401(k) account with your previous employer. Many Olivette, 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) experts and financial advisors will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) services in Olivette, MO, give us a call at 314-930-401K or contact us online.
How You Can Approach Your Rollover 401(k) in Olivette, MO
Typically, there are four different things you can do with your 401(k) account with your old employer. A knowledgeable Olivette, MO financial advisor like those at Correct Capital will analyze your financial situation and guide you towards your preferred option. Depending on a variety of factors, we may recommend to:
- Keep your 401(k) with your old employer;
- 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).
Taking out the cash value is not recommended unless you need money now. Your previous employer will have to take out 20% of the savings for tax purposed. 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 funds.
One last consideration to note is that businesses in Olivette, MO are allowed to make you move the money 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 Olivette, MO
Your Olivette, 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 increase in value between the original value and market value of shares of employer stock in your 401(k) account. If part of your 401(k) includes company stock, you can transfer 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 caps out at 20% for the highest earners — rather than income tax, which is often higher.
The Custodian of Your Choice
When you opt to put your retirement funds in a 401(k), you will not have any control over the 401(k) company that holds your savings. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll be able to choose your preferred institution based on how secure they are and the range of services they offer.
A Wider Range of Investment Options
While some Olivette, MO companies provide 401(k) plans with few limitations on your investment opportunities, you will generally have much more control over an IRA than you would in a 401(k) plan. IRAs typically allow investment in almost any type of asset, 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, there are many advantages to merging all of your savings into one place. In doing so, it won't be nearly as much of a hassle to track how your savings are performing and you will be able to manage them more directly. It may also be the better option for long-term growth.
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 may be eligible to keep contributing to the plan you've picked out.
The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have over 20 years of experience assisting both individuals and families and business owners in Olivette, MO with A-Z 401(k) services. When you meet with us, 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 Olivette, MO
Every person's finances vary, and your Olivette, MO retirement planners at Correct Capital may advise that your funds should be left 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 rather than an IRA include:
- If you like the benefits of your current 401(k) plan. If the fees aren't exorbitant and you're getting strong returns, it may make the most sense to keep your savings where they are. If the account stops performing or you change your mind for another reason, you can still roll over your 401(k) at any time.
- Avoid early withdrawal fees 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. A 401(k) may be best if you need or want the money sooner.
- 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) 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 stick with a 401(k) your employer will match your contributions.
Click on the links below to see some of the other services we offer in Olivette, 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 Olivette, 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 75 years of combined experience aiding Olivette, 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 do what's best for you and disclose any potential conflicts of interest. As an independent firm, we are free to be direct and unbiased, and there are no limitations to the services or investment opportunities we can recommend.