Rollover 401(k) in St. Louis County, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in St. Louis County, MO. While moving to a new job can be a welcome change, it can be hard to know what to do with your 401(k) account with your previous employer. Many St. Louis County, MO residents have found that seeking the help 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) consulting in St. Louis County, MO, reach out to us today at 314-930-401K or contact us online.
Rollover 401(k) Options in St. Louis County, MO
Generally speaking, there are four different things you can do with your 401(k) account with your old employer. A qualified St. Louis County, MO financial advisor like those at Correct Capital will analyze your finances and guide you towards what will work best for you. Depending on a variety of factors, we may advise to:
- Keep your 401(k) with your old employer;
- 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 is not advisable unless you need money now. Your previous employer would be obligated to withhold 20% of the savings for tax purposed. Depending on how close you are to retirement, the IRS may also withhold a 20% early withdrawal penalty, and you would would be subject to federal, state, and local taxes. That means you might not even see 50% of the funds.
One last consideration to note is that many businesses in St. Louis County, MO require you to roll over the funds to an IRA or new 401(k) if your plan has less than $5,000 in it. Furthermore, you may be required to cash out your plan if it has less than $1,000.
Benefits to Rolling Over a 401(k) into an IRA in St. Louis County, MO
Your St. Louis County, 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:
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 difference into a standard brokerage account, and roll the remainder 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.
Pick Your Own Financial Institution
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 Opportunities
While some St. Louis County, MO employers offer 401(k) plans that allow for a wide range of 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
- Real estate investment trusts
Combine Your Savings Accounts
If you have several 401(k) plans spread across multiple former employers, there are many advantages to combining the funds from all your accounts into one account. That will make it easier to 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. 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 20 years of experience advising both individuals and families and business owners in St. Louis County, MO with numerous 401(k) services. When you meet with us, we'll guide you through special considerations, for instance which type of savings plan fits best in your portfolio.
When Not to Roll Over Your 401(k) into an IRA in St. Louis County, MO
Each of our client's financial situation is unique, and your St. Louis County, MO retirement planners at Correct Capital may advise that your savings are better off in a 401(k) account; either your previous employer's or your new one. Some reasons to stick with a 401(k) plan rather than an IRA are:
- If your current 401(k) plan works for you. If the fees are reasonable and your savings are growing as you'd like them to, it may make the most sense to keep your savings where they are. If the account doesn't perform as well or you change your mind for a different reason, you retain the right to roll over the funds whenever you'd like.
- Avoid early withdrawal penalties if you are 55. While you can begin taking out funds without a fee from both a 401(k) or IRA at 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 earlier.
- You cannot take a loan out of an IRA. 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 can pay matching contributions into your 401(k) plan. Employers may contribute a full 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 St. Louis 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. Louis County, MO | Correct Capital
At Correct Capital, we give all of our clients personalized attention and tailor our services and advice to their current financial status, objectives, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience assisting St. Louis County, MO individuals and families with 401(k) rollovers as part of our comprehensive wealth management services. As fiduciary advisors, we have a legal and ethical obligation to act only in your best interested. As an independent firm, we will always be honest and unbiased, and we are not bound to only offer you limited investment options.