Rollover 401(k) in Sunset Hills, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Sunset Hills, MO. Moving to a new job in Sunset Hills, MO is exciting, but it can also create confusion about the best way to handle your existing 401(k). Many Sunset Hills, MO residents don't have the time, expertise, or interest to oversee multiple retirement accounts or to understand the best way to approach a 401(k) rollover. At Correct Capital, our experienced team of 401(k) experts and retirement planners will help you understand your options. For rollover 401(k) advice in Sunset Hills, MO, call us today at 314-930-401K or contact us online.
How You Can Approach Your Rollover 401(k) in Sunset Hills, MO
Typically, you have four options when considering whether to roll over your 401(k). A experienced Sunset Hills, MO financial advisor like those at Correct Capital will be able to look at your finances and guide you towards your preferred option. Depending on your specific circumstances, it may be best 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 should only be considered if you need funds quickly. Your previous employer will have to withhold 20% of the balance to prepay the taxes you would owe on it. Depending on how close you are to retirement, the IRS may also take a 20% early withdrawal penalty, and you would would be subject to federal, state, and local taxes. Meaning, you could lose the majority of the funds.
Another thing to mention is that many employers in Sunset Hills, MO obligate you to move the funds in your 401(k) if your plan has less than $5,000 in it. Additionally, you may be required to cash out your plan if the balance is less than $1,000.
Benefits to Rolling Over a 401(k) into an IRA in Sunset Hills, MO
Your Sunset Hills, 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 transfer that difference into a standard brokerage account, and roll the remainder to an IRA. The advantage of this is that 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.
Pick Your Own Custodian
When you opt to put your savings in a 401(k), your employer will decide the 401(k) company holding your funds. By rolling over to an IRA, you'll be able to choose your preferred institution based on stability, trading technology, and financial services.
A Wider Range of Investment Options
While some Sunset Hills, MO employers provide 401(k) plans with few limitations on your 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 various 401(k) plans with previous employers, it could be incredibly helpful to merge the entirety of your retirement funds into one account. That will make it easier to track how your savings are performing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.
Continue Adding Money 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 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 over 20 years of experience helping both individuals and business owners in Sunset Hills, MO with A-Z 401(k) services. When you meet with us, we'll help you navigate important considerations, for instance which type of savings plan fits best in your portfolio.
When to Avoid a 401(k) Rollover in Sunset Hills, MO
Each of our client's financial situation is unique, and your Sunset Hills, MO retirement planners at Correct Capital may advise that your investments are best kept in a 401(k) plan; 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 are:
- If you like the benefits of your current 401(k) plan. If the fees aren't too high and you're getting strong returns, 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 another reason, you retain the right to roll over the funds whenever you'd like.
- Avoid early withdrawal fees if you are 55. While you can begin taking out funds 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 can put matching contributions into your 401(k) plan. Employers may contribute a dollar-for-dollar or partial match into a 401(k), while an IRA would only include the money you put into it.
Check out some of the other services we offer in Sunset Hills, 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 Sunset Hills, 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 nearly a century of combined experience helping Sunset Hills, MO individuals and families with 401(k) rollovers as part of our comprehensive wealth management services. As fiduciary advisors, we have a legal and moral imperative 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 we are not bound to only offer you limited investment options.