Rollover 401(k) in Rock Hill, MO
Rollover 401(k) in Rock Hill, MO. Moving to a new job in Rock Hill, MO can lead to new opportunities, but it can be hard to know what to do with the savings you have in your existing 401(k). Many Rock Hill, 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 retirement consultants will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) services in Rock Hill, MO, call us today at 314-930-401K or contact us online.
Rollover 401(k) Options in Rock Hill, MO
In general, there are four different things you can do with your 401(k) account with your old employer. A experienced Rock Hill, MO financial advisor like those at Correct Capital will analyze your assets, savings, and 401(k) plan and guide you towards your preferred option. Depending on a variety of factors, it may be best to:
- Leave the savings in your former employer's 401(k) plan;
- 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).
The last option should only be considered if you need funds quickly. Your previous employer would be required to withhold 20% of the balance for tax purposed. Depending on your age, 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 your savings.
Another thing to mention is that employers in Rock Hill, MO are allowed to make you move the money if your plan has less than $5,000 in it. Additionally, 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 Rock Hill, MO
Your Rock Hill, MO financial advisors at Correct Capital may advise rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of benefits 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) plan. If part of your 401(k) includes company stock, you can put that increase in value 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 the shares — which is usually 15% but can go up to 20% for people with high-income — rather than income tax, which may be considerably more.
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 institution based on stability, trading technology, and financial services.
More of Investment Opportunities
While some Rock Hill, MO businesses offer 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:
- Stocks
- Bonds
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
- Annuities
Consolidate Your 401(k) Plans
If you change jobs frequently, it could be incredibly helpful to incorporate all of your savings into one place. That will make it easier to follow the growth of your funds and you will be able to manage them more directly. You could also see greater long-term gains.
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 may be eligible to keep contributing to the plan you've picked out.
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 assisting both individuals and business owners in Rock Hill, MO with comprehensive 401(k) services. When you retain our services, we'll walk you through special considerations, such as what type of account makes the most sense for your time horizon.
Why Not to Roll Over Your 401(k) into an IRA in Rock Hill, MO
Each of our client's financial situation is unique, and your Rock Hill, MO retirement planners at Correct Capital may advise that your investments should be left in a 401(k) plan; whether that be your previous employer's or your new one. Some of the advantages of a 401(k) plan over an IRA are:
- 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 be your best option 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.
- 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're considering early retirement.
- You cannot take a loan out of an IRA. While taking a loan from retirement savings isn't advisable, you would only be able to do so if they are in a 401(k) plan.
- Your employer may match your 401(k) contributions. 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 Rock Hill, 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 Rock Hill, MO | Correct Capital
At Correct Capital, we give all of our clients personalized guidance 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 seven decades of combined experience aiding Rock Hill, 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 imperative to act only in your best interested. As an independent firm, we are free to be direct and unbiased, and we are not bound to only offer you limited investment opportunities.
Reach out to us today at 314-930-401K or contact us online to schedule an appointment with one of our knowledgeable 401(k) specialists and financial planners today.
