Rollover 401(k) in St. Peters, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in St. Peters, MO. Starting a new job in St. Peters, MO is exciting, but it can be hard to know what to do with the savings you have in your existing 401(k). Many St. Peters, MO 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 dedicated team of 401(k) experts and retirement consultants will help you understand your options. For rollover 401(k) advice in St. Peters, MO, give us a call at 314-930-401K or contact us online.
Rollover 401(k) Options in St. Peters, MO
Generally speaking, there are four different things you can do with your 401(k) account with your old employer. A professional St. Peters, MO financial advisor like those at Correct Capital will analyze your financial situation and help you decide which option is best for you. Depending on a variety of factors, we may recommend to:
- Keep your 401(k) with your old employer;
- Roll over your 401(k) to a plan with your new employer;
- Roll over your 401(k) into a Traditional IRA or Roth IRA;
- Take the cash value out of your 401(k).
The last option should only be considered if you need funds quickly. Your previous employer would be obligated to withhold 20% of the balance for tax purposed. You may also face a 10% early withdrawal penalty from the IRS, and you would would be subject to federal, state, and local taxes. Meaning, you could lose the majority of the account's value.
It is important to mention that many companies in St. Peters, MO obligate you to roll over the funds to an IRA or new 401(k) if your plan has less than $5,000 in it. Furthermore, 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. Peters, MO
Your St. Peters, 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. This is beneficial for several different reasons:
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 shares of employer stock in your 401(k) plan. If part of your 401(k) includes company stock, you can put that difference into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. This way, 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
When you opt to put your retirement funds in a 401(k), you will not have any control over the 401(k) company that holds your money. By rolling over to an IRA, you'll have your pick of institutions 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. Peters, MO businesses offer 401(k) plans that permit a wide range of investment options, most retirement planners find that IRAs offer more control and flexibility than employer-limited 401(k) plans. In an IRA, you can invest in any number of assets, including:
- Certificates of deposit
- Mutual funds
- Exchange-traded funds
- Real estate investment trusts
Consolidate Your Savings Accounts
If you have several 401(k) plans spread across multiple former employers, it could be incredibly helpful to combine all of your savings into one account. That will make it easier to follow 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 you will still see return on your investments 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 may be eligible to keep contributing to the plan you've picked out.
The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have more than 20 years of experience assisting both individuals and families and business owners in St. Peters, MO with a variety of 401(k) services. When you retain our services, we'll guide you through special considerations, for instance required minimum distribution model makes the most sense for you.
When to Avoid a 401(k) Rollover in St. Peters, MO
Each of our client's financial situation is unique, and your St. Peters, MO retirement planners at Correct Capital may advise that your funds are best kept in a 401(k) account; whether that be your previous employer's or your new one. Some reasons to stick with a 401(k) plan rather than an IRA are:
- If you like the benefits of your current 401(k) plan. If the fees are reasonable and you're getting strong returns, there may not be a good reason to roll over your 401(k). the fees change in the future 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 savings without a fee from both 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 earlier.
- 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, you would only be able to do so if they are in a 401(k) plan.
- Your employer may match your 401(k) contributions. 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) to receive an employer match and keep your retirement assets in one place.
Click on the links below to see some of the other services we offer in St. Peters, 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. Peters, MO | 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 seven decades of combined experience aiding St. Peters, MO individuals and families with 401(k) rollovers along with many 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 unbiased, and there are no restrictions to the services or investment options we can recommend.