Rollover 401(k) in Sappington, MO

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

Rollover 401(k) in Sappington, MO. Starting a new job in Sappington, MO can lead to new opportunities, but it can be hard to know what to do with your 401(k) account with your previous employer. Many Sappington, MO residents don't have the time, expertise, or interest to manage multiple retirement accounts or to carefully weigh their best options when considering a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and financial advisors will help you understand your options. For rollover 401(k) advice in Sappington, MO, reach out to us today at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in Sappington, MO

In general, you have four options when considering whether to roll over your 401(k). A knowledgeable Sappington, MO financial advisor like those at Correct Capital will consider your finances and help you decide which option is best for you. Depending on a variety of factors, it may be best to:

  1. Leave the funds in your former employer's 401(k) plan;
  2. Roll over your 401(k) to your new employer's 401(k);
  3. Roll over your 401(k) into a Traditional IRA or Roth IRA;
  4. Take the cash value out of your 401(k).

Cashing out is not recommended unless you need money now. Your previous employer would be obligated to take out 20% of the balance 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 your savings.

Another thing to mention is that many companies in Sappington, MO require you to roll over the funds to an IRA or new 401(k) if your account has less than $5,000 in it. Furthermore, 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 Sappington, MO

Your Sappington, 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 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 0%, 15%, or 20%, depending on your income — instead of income tax, which is often higher.


The Financial Institution 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, the ease of their digital platforms, and the other services they offer.


More of Investment Opportunities

While some Sappington, MO employers provide 401(k) plans with few limitations on your investment opportunities, you will generally have much more flexibility in an IRA than you would in a 401(k) plan. IRAs typically allow investment in almost any type of asset, including:

  • Shares
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • Exchange-traded funds
  • Real estate investment trusts
  • Annuities

Combine Your Savings Accounts

If you have multiple 401(k) plans with previous employers, it could be incredibly helpful to incorporate all of your savings into one account. In doing so, it won't be nearly as much of a hassle to track how your investments are growing and managing them will be more streamlined. 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 determine if a 401(k) rollover is the best option for you. We have more than two decades of experience helping both individuals and business owners in Sappington, MO with a variety of 401(k) services. When you hire Correct Capital, we'll help you navigate special considerations, such as how a 401(k) rollover will affect your tax planning.

Why Not to Roll Over Your 401(k) into an IRA in Sappington, MO

Every person's finances vary, and your Sappington, MO retirement planners at Correct Capital may advise that your savings should be left in a 401(k) account; whether that be your previous employer's or your new one. Some reasons to stick with a 401(k) plan instead of an IRA include:

  • If your current 401(k) plan works for you. If the fees aren't exorbitant and you're getting strong returns, it may be advisable to keep your savings where they are. If the account stops giving you strong returns or you change your mind for another reason, you retain the right to roll over the funds whenever you'd like.
  • Avoid early withdrawal fees if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 59½, you will not have to pay a 10% early withdrawal fee taking money out of a 401(k) once you have turned 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 typically not advisable, if you are in a situation where you need to take out a loan from your retirement savings, it is important to mention that you cannot take a loan out of an IRA.
  • Your employer may match your 401(k) contributions. Employers may contribute a dollar-for-dollar or partial match into a 401(k), while you are the only contributor if you put your savings into an IRA.

Click on the links below to see some of the other services we offer in Sappington, MO:

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

Rollover 401(k) in Sappington, MO | Correct Capital

At Correct Capital, we treat each client individually and get to know them so we can help them achieve their goals. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience assisting Sappington, MO individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we are legally and ethically bound to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we will always be straightforward and unbiased, and there are no limitations to the services or investment options we can recommend.

Reach out to us today at 314-930-401K or contact us online to schedule an appointment with one of our qualified 401(k) experts and retirement planners today.

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