Rollover 401(k) in St. Clair County, IL

Rollover 401(k) in St. Clair County, ILProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in St. Clair County, IL. Starting a new job in St. Clair County, IL can lead to new opportunities, but it can be hard to know what to do with your existing 401(k). Many St. Clair County, IL residents have found that enlisting the services of professional financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and retirement planners will help you determine what makes the most sense for you. For rollover 401(k) services in St. Clair County, IL, call us today at 314-930-401K or contact us online.


What You Can Do With Your Rollover 401(k) in St. Clair County, IL

Generally speaking, there are four different things you can do with your 401(k) account with your old employer. A experienced St. Clair County, IL financial advisor like those at Correct Capital will consider your financial situation and help you determine which option is best for you. Depending on your specific circumstances, we may advise to:

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

The last option is only truly an option if you need funds quickly. Your previous employer will have to take out 20% of the savings to prepay the taxes you would owe on it. Depending on how close you are to retirement, the IRS may also withhold a 20% early withdrawal penalty, and you would also have to pay federal, state, and local taxes. Meaning, you could potentially lose more than 50% of the account's value.

It is important to mention that companies in St. Clair County, IL 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 St. Clair County, IL

Your St. Clair County, IL financial advisors at Correct Capital may recommend 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 increase in value between the original value and market value of company stock in your retirement account. If you won shares of your previous company in your 401(k), you can put that portion of your account into a standard brokerage account, and roll the remainder to an IRA. This way, you may pay long term capital gains tax on your company stock — which is usually 15% but can go up to 20% for people with high-income — rather than income tax, which is often higher.


The Financial Institution of Your Choice

When you opt to put your savings in a 401(k), the money will be held by the 401(k) company your employer chooses. By rolling over to an IRA, you'll be able to choose your preferred custodian based on how secure they are, the ease of their digital platforms, and the other services they offer.


More Diverse of Investment Options

While some St. Clair County, IL companies offer 401(k) plans that include a wide range of investment options, 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 have several 401(k) plans spread across multiple former employers, it could be incredibly helpful to incorporate the entirety of your retirement funds into one plan. That way, you much much more efficiently track the growth of your funds and you will be able to manage them more directly. Sustained long-term growth may also be more attainable.


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. 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 help you decide if a 401(k) rollover is the best option for you. We have more than 20 years of experience assisting both individuals and business owners in St. Clair County, IL with A-Z 401(k) services. When you hire Correct Capital, we'll help you navigate special considerations, for instance how a 401(k) rollover will affect your tax planning.

Why to Avoid a 401(k) Rollover in St. Clair County, IL

Every person's finances vary, and your St. Clair County, IL retirement planners at Correct Capital may advise that your investments should be left 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 aren't exorbitant and the return on investment is good, there may not be a great reason to roll over your 401(k). If the account stops giving you strong returns or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
  • No 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 taking a loan from retirement savings isn't recommended, it is important to mention that you cannot take a loan out of either a Traditional or Roth IRA.
  • Your employer can put matching contributions into your 401(k) plan. 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.

Check out some of the other services we offer in St. Clair County, IL:

Rollover 401(k) St. Clair County, IL | 401(k) Management | Financial Advisors | Retirement Planning Near St. Clair County

Rollover 401(k) in St. Clair County, IL | 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 75 years of combined experience aiding St. Clair County, IL individuals and families with 401(k) rollovers in addition to several 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 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) specialists and retirement planners today.

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