Rollover 401(k) in St. Charles, MO

Rollover 401(k) in St. Charles, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in St. Charles, 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 St. Charles, MO residents have found that seeking the help of professional financial advisors is the best way to go about handling a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and retirement consultants will help you determine what makes the most sense for you. For rollover 401(k) consulting in St. Charles, MO, reach out to us today at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in St. Charles, MO

In general, you have four options when considering whether to roll over your 401(k). A qualified St. Charles, MO financial advisor like those at Correct Capital will consider your finances and help you decide which option is best for you. Depending on your current financial health and your time horizon, 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).

Taking out the cash value is not recommended unless you need money now. 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 potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of the funds.

It is important to mention that many employers in St. Charles, MO obligate you to move the funds in your 401(k) if your plan 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 St. Charles, MO

Your St. Charles, 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:


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 cost basis and current value of shares of employer stock in your 401(k) plan. If you won shares of your previous company in your 401(k), you can put that difference into a standard brokerage account, and roll the other funds to an IRA. By separating your 401(k) into two accounts, 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, the money will be held by the 401(k) company your employer chooses. 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 of Investment Opportunities

While some St. Charles, MO businesses offer 401(k) plans with few limitations on your investment opportunities, IRAs typically offer an individual investor many more options than 401(k) plans. In an IRA, you can invest in any number of assets, including:

  • Stocks
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • ETFs
  • Real estate investment trusts
  • Annuities

Combine Your 401(k) Plans

If you change jobs frequently, there are many advantages to incorporating the entirety of your retirement funds into one plan. In doing so, it won't be nearly as much of a hassle to follow how your investments are growing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.


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. By rolling over the funds into an IRA, you continue adding more money over time.

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 St. Charles, MO with comprehensive 401(k) services. When you meet with us, we'll help you navigate important considerations, for instance which type of savings plan fits best in your portfolio.

When to Avoid a 401(k) Rollover in St. Charles, MO

Every person's finances vary, and your St. Charles, MO retirement planners at Correct Capital may advise that your investments should be left in a 401(k) account; either your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan rather than an IRA include:

  • If your current 401(k) plan works for you. If the fees are fair 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 you can begin taking out funds without a fee from either a 401(k) or IRA at 59½, the threshold in a 401(k) for a 10% early withdrawal fee is 55. A 401(k) may be best if you need or want the money sooner.
  • 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 either a Traditional or Roth 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 while you are still working, 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 St. Charles, MO:

Rollover 401(k) St. Charles, MO | 401(k) Management | Financial Advisors | Retirement Planning Near St. Charles

Rollover 401(k) in St. Charles, 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, objectives, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have over seven decades of combined experience assisting St. Charles, 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 manage your account in a way that benefits you and only you. As an independent firm, we are free to be honest and unbiased, and there are no restrictions to the services or investment opportunities we can offer you.

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

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