Rollover 401(k) in St. Charles County, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in St. Charles County, MO. Starting a new job in St. Charles County, 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 St. Charles County, MO residents don't have the time, knowledge, 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 planners will help you get the most out of your savings. For rollover 401(k) consulting in St. Charles County, MO, give us a call at 314-930-401K or contact us online.
Rollover 401(k) Options in St. Charles County, MO
Generally speaking, you have four options when considering whether to roll over your 401(k). A qualified St. Charles County, MO financial advisor like those at Correct Capital will consider your financial situation and help you determine which option is best for you. Depending on a variety of factors, we may advise to:
- Leave the funds 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;
- Take the cash value out of your 401(k).
Cashing out should only be considered if you need funds quickly. Your previous employer would be required to withhold 20% of the funds in order to pay taxes on it. You may also face a 10% early withdrawal penalty from the IRS, and you would also have to pay federal, state, and local taxes. That means you might not even see 50% of the account's value.
Another thing to mention is that businesses in St. Charles County, 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.
Benefits to Rolling Over a 401(k) into an IRA in St. Charles County, MO
Your St. Charles County, 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. 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 increase in value between the original value and market value of company stock in your 401(k) account. If part of your 401(k) includes company stock, you can put 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 is 0%, 15%, or 20%, depending on your income — instead of income tax, which is often higher.
The Custodian of Your Choice
In a 401(k) plan, your employer will decide the 401(k) company holding your funds. By rolling over to an IRA, you'll have your pick of institutions based on how secure they are and the range of services they offer.
More Diverse of Investment Options
While some St. Charles County, MO employers provide 401(k) plans with few limitations on your investment options, IRAs typically offer an individual investor many more options than 401(k) plans. IRAs typically allow investment in almost any type of asset, including:
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
Combine Your Savings Accounts
If you change jobs frequently, it could be incredibly helpful to combine the funds from all your accounts into one account. That way, you much much more efficiently follow how your investments are performing and you will be able to manage them more directly. You could also see greater long-term gains.
Continue Adding Money 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. 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 helping both individuals and families and business owners in St. Charles County, MO with numerous 401(k) services. When you meet with us, we'll help you navigate important considerations, such as whether a traditional or Roth IRA is best for you.
Why to Avoid a 401(k) Rollover in St. Charles County, MO
Each of our client's financial situation is unique, and your St. Charles County, MO retirement planners at Correct Capital may recommend that your investments should be left in a 401(k) plan; either your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan over an IRA include:
- If you like the benefits of your current 401(k) plan. If the fees are fair and you're getting strong returns, it may make the most sense 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.
- No early withdrawal penalties if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 59½, the threshold in a 401(k) for a 10% early withdrawal fee is 55. A 401(k) may be best if you're considering early retirement.
- Loans from an IRA are not allowed. While typically not recommended, 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 can pay 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) to receive an employer match and keep your retirement assets in one place.
Click on the links below to see some of the other services we offer in St. Charles County, 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 St. Charles County, MO | Correct Capital
At Correct Capital, we give all of our clients bespoke attention and cater our services and advice to their current financial health, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years of combined experience assisting St. Charles County, MO individuals and families with 401(k) rollovers along with many other wealth management services. As fiduciary advisors, we are legally and ethically bound to act only in your best interested. As an independent firm, we are free to be honest and objective, and we are not bound to only offer you limited investment options.