Rollover 401(k) in Town and Country, MO

Rollover 401(k) in Town and Country, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Town and Country, MO. Starting a new job in Town and Country, MO can lead to new opportunities, but it can be hard to know what to do with your 401(k) account with your previous employer. Many Town and Country, MO residents have found that seeking the help of professional financial advisors is the best way to go about handling a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) specialists and financial planners will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) advice in Town and Country, MO, give us a call at 314-930-401K or contact us online.


How You Can Approach Your Rollover 401(k) in Town and Country, MO

Typically, there are four different things you can do with your 401(k) plan with your old employer. A qualified Town and Country, MO financial advisor like those at Correct Capital will consider your assets, savings, and 401(k) plan and guide you towards your preferred option. Depending on your specific circumstances, it may be best to:

  1. Leave the savings in your former employer's 401(k) plan;
  2. Roll over your 401(k) to your new employer's 401(k);
  3. Roll over your 401(k) into a Traditional IRA or Roth IRA;
  4. Cash out your 401(k).

Taking out the cash value 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 potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of the funds.

Another thing to note is that companies in Town and Country, MO are allowed to make you move the money if your plan 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 Town and Country, MO

Your Town and Country, MO financial advisors at Correct Capital may suggest rolling over your 401(k) into an Individual Retirement Account (IRA). 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 company stock in your retirement plan. If you won shares of your previous company in your 401(k), you can transfer that portion of your account into a standard brokerage account, and roll the remainder to an IRA. This way, 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 — rather than income tax, which may be significantly more.


Pick Your Own Custodian

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 custodians based on how secure they are and the range of services they offer.


A Wider Range of Investment Opportunities

While some Town and Country, MO businesses offer 401(k) plans with few limitations on your investment options, you will generally have much more flexibility in an IRA than you would in a 401(k) plan. In an IRA, you can invest in any number of assets, including:

  • Shares
  • 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, there are many advantages to merging the entirety of your retirement funds into one plan. That way, you much much more efficiently follow how your savings are growing and you will be able to manage them more efficiently. 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. 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 help you decide if a 401(k) rollover is the best option for you. We have more than two decades of experience assisting both individuals and families and business owners in Town and Country, MO with numerous 401(k) services. When you retain our services, 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 Town and Country, MO

Every person's finances vary, and your Town and Country, MO retirement planners at Correct Capital may advise 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 over an IRA include:

  • If you like the benefits of your current 401(k) plan. If the fees aren't exorbitant and your savings are growing as you'd like them to, it may be advisable to keep your savings where they are. 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.
  • Avoid early withdrawal penalties if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 59½, the threshold in a 401(k) for a 10% early withdrawal fee is 55. So, a 401(k) may be preferable if you would like to retire a few years early.
  • You cannot take a loan out of an IRA. While taking a loan from retirement savings should only be considered in certain circumstances, you would only be able to do so if they are in a 401(k) plan.
  • Your employer may match your 401(k) contributions. Employers may contribute a dollar-for-dollar or partial match into a 401(k), while you are the only contributor if you put your savings into an IRA.

See some of the other services we offer in Town and Country, MO:

Rollover 401(k) Town and Country, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Town and Country

Rollover 401(k) in Town and Country, MO | Correct Capital

At Correct Capital, we give all of our clients bespoke guidance and cater our services and advice to their current financial status, goals, and time horizon. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience helping Town and Country, MO individuals and families with 401(k) rollovers in addition to several other wealth management services. As fiduciary advisors, we have a legal and ethical imperative to act only in your best interested. As an independent firm, we will always be honest 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 experienced 401(k) specialists and financial advisors today.

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