Rollover 401(k) in Shrewsbury, MO

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

Rollover 401(k) in Shrewsbury, MO. Starting a new job in Shrewsbury, MO is exciting, but it can also lead to confusion about the best way to handle the savings you have in your existing 401(k). Many Shrewsbury, MO residents don't have the time, expertise, 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) specialists and retirement consultants will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) counseling in Shrewsbury, MO, give us a call at 314-930-401K or contact us online.


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

Typically, you have four options when considering whether to roll over your 401(k). A experienced Shrewsbury, MO financial advisor like those at Correct Capital will analyze your finances and guide you towards your preferred option. Depending on a variety of factors, it may be best to:

  1. Leave the money 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. Cash out your 401(k).

The last option should only be considered if you need funds quickly. Your previous employer will have to withhold 20% of the funds 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. Cashing out could leave you with less than 50% of the account's value.

It is important to note that businesses in Shrewsbury, MO are allowed to make you move the money if your plan 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 Shrewsbury, MO

Your Shrewsbury, MO financial advisors at Correct Capital may advise 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 original value and current value of company stock in your retirement plan. If you won shares of your previous company in your 401(k), you can transfer that difference 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 your company stock — which caps out at 20% for the highest earners — rather than income tax, which may be considerably more.


The Custodian of Your Choice

In a 401(k) plan, 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 custodian based on how secure they are and the range of services they offer.


More of Investment Options

While some Shrewsbury, MO companies provide 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. 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

Combine Your 401(k) Plans

If you change jobs frequently, it may make the most sense to combine the funds from all your accounts into one place. That will make it easier to follow how your savings are growing 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 will still see return on your investments 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 continue adding more money over time.

The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have more than two decades of experience assisting both individuals and families and business owners in Shrewsbury, MO with numerous 401(k) services. When you hire Correct Capital, we'll guide you through special considerations, such as which type of savings plan fits best in your portfolio.

When Not to Roll Over Your 401(k) into an IRA in Shrewsbury, MO

Depending on your time horizon and other factors your Shrewsbury, MO retirement planners at Correct Capital may advise that your investments are better off 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 over an IRA include:

  • If your current 401(k) plan works for you. If the fees are fair and the return on investment is good, it may be advisable to keep your savings where they are. If the account doesn't perform as well or you change your mind for another reason, you can still roll over your 401(k) at any time.
  • No early withdrawal fees if you are 55. While both 401(k)s and IRAs permit 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. A 401(k) may be best if you're considering early retirement.
  • 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, you would only be able to do so if they are in a 401(k) plan.
  • Your employer may match your 401(k) contributions. Employers may contribute a dollar-for-dollar or partial match into a 401(k), while an IRA would only include the money you put into it.

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

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

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

At Correct Capital, we treat each client individually and get to know them so we can help them realize their objectives. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience assisting Shrewsbury, MO individuals and families with 401(k) rollovers along with many 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 are free to be straightforward and unbiased, and there are no restrictions to the services or investment opportunities we can recommend.

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

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