Rollover 401(k) in St. Louis, MO

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

Rollover 401(k) in St. Louis, MO. Starting a new job in St. Louis, MO can lead to new opportunities, but it can be hard to know what to do with the savings you have in your 401(k) account with your previous employer. Many St. Louis, MO residents don't have the time, knowledge, or interest to oversee multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) experts and financial advisors will help you understand your options. For rollover 401(k) counseling in St. Louis, MO, give us a call at 314-930-401K or contact us online.


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

Generally speaking, there are four ways to approach your 401(k) rollover. A professional St. Louis, MO financial advisor like those at Correct Capital will be able to look at your financial situation and guide you towards your preferred option. Depending on a variety of factors, we may advise to:

  1. Leave the savings 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 should only be considered if you need funds quickly. Your previous employer will have to take out 20% of the balance 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. Meaning, you could potentially lose more than half of the account's value.

It is important to note that companies in St. Louis, MO are allowed to make you move the money if your account has less than $5,000 in it. Lastly, 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. Louis, MO

Your St. Louis, MO financial advisors at Correct Capital may recommend 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 difference between the cost basis and current value of shares of employer 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 other funds to an IRA. The advantage of this is that you may pay long term capital gains tax on the shares — which caps out at 20% for the highest earners — instead of income tax, which may be substantially more.


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 custodians based on stability, trading technology, and financial services.


More of Investment Options

While some St. Louis, MO companies offer 401(k) plans that allow for a wide array of investment options, 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:

  • Shares
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • Exchange-traded funds
  • Real estate investment trusts
  • Annuities

Consolidate 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 account. That will make it easier to track how your investments are growing and you will be able to manage them more efficiently. 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. If you roll the funds out of your old employer's plan, you will be able to supplement your savings.

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 two decades of experience advising both individuals and families and business owners in St. Louis, MO with numerous 401(k) services. When you hire Correct Capital, we'll help you navigate special considerations, such as required minimum distribution model makes the most sense for you.

Why Not to Roll Over Your 401(k) into an IRA in St. Louis, MO

Depending on how close you are to retirement and other considerations your St. Louis, MO retirement planners at Correct Capital may recommend that your savings are better off 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 instead of an IRA include:

  • If your current 401(k) plan works for you. If the fees are fair and you're getting strong returns, there may not be a great reason to roll over your 401(k). 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 you can begin taking out money without a fee from either a 401(k) or IRA at 59½, a 401(k) does not include a 10% early withdrawal fee if you are 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 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 put matching contributions into your 401(k) account. Employers may contribute a full or partial match into a 401(k), while an IRA would only include the money you put into it.

See some of the other services we offer in St. Louis, MO:

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

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

At Correct Capital, we give all of our clients personalized guidance 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 nearly a century of combined experience aiding St. Louis, MO individuals and families with 401(k) rollovers in addition to several other wealth management services. As fiduciary advisors, we are legally and ethically obligated to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we will always be honest and objective, 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 knowledgeable 401(k) specialists and financial planners today.

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