Rollover 401(k) in Tower Grove, MO

Rollover 401(k) in Tower Grove, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Tower Grove, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with the savings you have in your 401(k) account with your previous employer. Many Tower Grove, MO residents don't have the time, financial literacy, 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 planners will help you understand your options. For rollover 401(k) consulting in Tower Grove, MO, reach out to us today at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in Tower Grove, MO

Typically, there are four ways to approach your 401(k) rollover. A experienced Tower Grove, 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 your specific circumstances, we may advise 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).

Cashing out is only truly an option if you need funds quickly. Your previous employer would be required to withhold 20% of the savings in order to pay taxes on it. 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 note that many businesses in Tower Grove, 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. Lastly, 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 Tower Grove, MO

Your Tower Grove, 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. There are a variety of benefits to this strategy:


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 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 other funds to an IRA. This way, 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.


The Custodian of Your Choice

In a 401(k) plan, your employer will decide the 401(k) company holding your funds. 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 of Investment Options

While some Tower Grove, MO companies provide 401(k) plans with few limitations on your investment options, IRAs typically offer an individual investor many more options than 401(k) plans. In an IRA, you can invest in any number of assets, including:

  • Stocks
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • ETFs
  • Real estate investment trusts
  • Annuities

Consolidate Your 401(k) Plans

If you change jobs frequently, there are many advantages to merging all of your savings into one plan. That will make it easier to track the performance of your funds 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. If you roll the funds out of your old employer's plan, 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 two decades of experience helping both individuals and business owners in Tower Grove, MO with numerous 401(k) services. When you hire Correct Capital, we'll help you navigate important considerations, such as whether a traditional or Roth IRA is best for you.

Why to Avoid a 401(k) Rollover in Tower Grove, MO

Every person's finances vary, and your Tower Grove, MO retirement planners at Correct Capital may recommend that your savings are better off in a 401(k) plan; whether that be your previous employer's or your new one. Some reasons to choose a 401(k) plan instead of an IRA are:

  • If your current 401(k) plan works for you. If the fees aren't too high and your savings are growing as you'd like them to, 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 a different reason, you retain the right to roll over the funds whenever you'd like.
  • No early withdrawal fees if you are 55. While you can begin taking out savings without a penalty from both a 401(k) or IRA at 59½, a 401(k) does not include a 10% early withdrawal fee if you are 55. A 401(k) may be best if you need or want the money sooner.
  • You cannot take a loan out of an IRA. While typically not recommended, if you are in a situation where you need to take out a loan from your retirement savings, it is important to know that you cannot take a loan out of an IRA.
  • Your employer can pay 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.

Click on the links below to see some of the other services we offer in Tower Grove, MO:

Rollover 401(k) Tower Grove, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Tower Grove

Rollover 401(k) in Tower Grove, MO | Correct Capital

At Correct Capital, we give all of our clients personalized attention 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 over seven decades of combined experience assisting Tower Grove, 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 obligation 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.

Give us a call today at 314-930-401K or contact us online to schedule an appointment with one of our knowledgeable 401(k) specialists and retirement planners today.

Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer