Rollover 401(k) in St. Louis County, MO

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Rollover 401(k) in St. Louis County, MO. While moving to a new job can be a welcome change, it can also create confusion about the best way to handle the savings you have in your existing 401(k). Many St. Louis 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 dedicated team of 401(k) experts and retirement planners will help you understand your options. For rollover 401(k) consulting in St. Louis County, MO, give us a call at 877-930-4015 or contact us online.


Rollover 401(k) Options in St. Louis County, MO

Typically, you have four options when considering whether to roll over your 401(k). A professional St. Louis County, MO financial advisor like those at Correct Capital will be able to look at your finances and guide you towards what will work best for you. Depending on a variety of factors, it may be best to:

  1. Keep your 401(k) with your old employer;
  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 not recommended unless you need money now. Your previous employer would be required to withhold 20% of the savings in order to pay taxes on it. Depending on how close you are to retirement, the IRS may also withhold a 20% early withdrawal penalty, and you would potentially pay even more in federal, state, and local taxes. That means you might not even see 50% of your savings.

It is important to mention that companies in St. Louis County, MO are allowed to make you move the money if your account has less than $5,000 in it. Furthermore, you may be required to cash out your plan if the balance is less than $1,000.


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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 suggest rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of benefits 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 difference between the cost basis and market value of company stock in your retirement account. If part of your 401(k) includes company stock, you can transfer that increase in value 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 the shares — which is usually 15% but can go up to 20% for people with high-income — instead of income tax, which may be considerably more.


Pick Your Own Financial Institution

When you opt to put your savings in a 401(k), the money will be held by the 401(k) company your employer chooses. 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 Diverse of Investment Opportunities

While some St. Louis County, MO businesses provide 401(k) plans with few limitations on your investment opportunities, you will generally have much more flexibility in an IRA than you would in a 401(k) plan. 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 have several 401(k) plans spread across multiple former employers, it may make the most sense to incorporate the entirety of your retirement funds into one plan. That way, you much much more efficiently track how your savings are growing and managing them will be more streamlined. You could also see greater long-term gains.


Keep Contributing to Your Accounts

While your money will still grow 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 help you decide if a 401(k) rollover is the best option for you. We have over 20 years of experience advising both individuals and business owners in St. Louis County, MO with comprehensive 401(k) services. When you meet with us, 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 St. Louis County, MO

Depending on your time horizon and other considerations your St. Louis County, MO retirement planners at Correct Capital may recommend that your investments are better off in a 401(k) account; either your an old plan or rolling them over into a new one. Some reasons to choose a 401(k) plan rather than an IRA include:

  • If your current 401(k) plan works for you. If the fees are reasonable and the return on investment is good, it may be advisable to keep your savings where they are. If the account stops giving you strong returns or you change your mind for a different reason, you can still roll over your 401(k) at any time.
  • No early withdrawal penalties if you are 55. While you can begin taking out funds without a penalty from either a 401(k) or IRA at 59½, you will not face 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.
  • 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 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 keep contributing to your 401(k) your employer will match your contributions.

Click on the links below to see some of the other services we offer in St. Louis County, MO:

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

Rollover 401(k) in St. Louis County, MO | Correct Capital

At Correct Capital, we give all of our clients bespoke guidance and tailor 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 aiding St. Louis County, MO individuals and families with 401(k) rollovers in addition to several other wealth management services. As fiduciary advisors, we are legally and ethically required to act only in your best interested. As an independent firm, we are free to be straightforward and objective, and we are not bound to only offer you limited investment options.

Call us today at 877-930-4015 or contact us online to schedule an appointment with one of our knowledgeable 401(k) experts and financial planners today.

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