Rollover 401(k) in Weldon Spring, MO

Rollover 401(k) in Weldon Spring, MOProfessional, Honest, and Experienced Retirement Planners and Financial Advisors

Rollover 401(k) in Weldon Spring, MO. While moving to a new job can be a welcome new opportunity, it can also lead to uncertainty about the best way to manage the savings you have in your existing 401(k). Many Weldon Spring, MO residents have found that seeking the help of qualified 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 retirement planners will help you determine what makes the most sense for you. For rollover 401(k) consulting in Weldon Spring, MO, call us today at 314-930-401K or contact us online.


What You Can Do With Your Rollover 401(k) in Weldon Spring, MO

In general, there are four different things you can do with your 401(k) account with your old employer. A professional Weldon Spring, MO financial advisor like those at Correct Capital will analyze your assets, savings, and 401(k) plan and guide you towards what will work best for you. Depending on a variety of factors, we may recommend 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. Cash out 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 savings in order to pay taxes on it. Depending on your age, the IRS may also withhold a 20% early withdrawal penalty, and you would also have to pay federal, state, and local taxes. Meaning, you could lose the majority of the funds.

Another thing to note is that companies in Weldon Spring, MO are allowed to make you move the money if your account has less than $5,000 in it. Furthermore, they may be able to cash out your account if the balance is less than $1,000.



Benefits to Rolling Over a 401(k) into an IRA in Weldon Spring, MO

Your Weldon Spring, 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:


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) account. If you won shares of your previous company in your 401(k), you can put that difference into a standard brokerage account, and roll the remainder 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 — instead of income tax, which is often higher.


Pick Your Own Financial Institution

When you opt to put your savings in a 401(k), the money will be held by the 401(k) company your employer chooses. By rolling over to an IRA, you'll be able to choose your preferred institution based on how secure they are, the ease of their digital platforms, and the other services they offer.


More Diverse of Investment Opportunities

While some Weldon Spring, MO companies offer 401(k) plans that permit a wide array of investment opportunities, most retirement planners find that IRAs offer more control and flexibility than employer-limited 401(k) plans. IRAs typically allow investment in almost any type of asset, including:

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

Consolidate Your 401(k) Plans

If you have several 401(k) plans spread across multiple former employers, it could be incredibly helpful to merge the funds from all your accounts into one account. That will make it easier to track the performance of your funds and you will be able to manage them more efficiently. You could also see greater long-term gains.


Continue Adding Money 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 may be eligible to keep contributing to the plan you've picked out.

The financial advisors of Correct Capital will help you determine if a 401(k) rollover is the best option for you. We have over 20 years of experience helping both individuals and business owners in Weldon Spring, MO with A-Z 401(k) services. When you retain our services, we'll guide you through important considerations, for instance required minimum distribution model makes the most sense for you.

Why Not to Roll Over Your 401(k) into an IRA in Weldon Spring, MO

Each of our client's financial situation is unique, and your Weldon Spring, MO retirement planners at Correct Capital may advise that your investments are best kept in a 401(k) plan; whether that be your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan rather than an IRA include:

  • If your current 401(k) plan works for you. If the fees are reasonable and your savings are growing as you'd like them to, it may be advisable to keep your savings where they are. If the account doesn't perform as well or you change your mind for another reason, you can still roll over your 401(k) at any time.
  • Avoid early withdrawal penalties if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 59½, you will not face a 10% early withdrawal fee taking money out of a 401(k) once you have turned 55. A 401(k) may be best if you're considering early retirement.
  • 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, it is important to mention 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.

Check out some of the other services we offer in Weldon Spring, MO:

Rollover 401(k) Weldon Spring, MO | 401(k) Management | Financial Advisors | Retirement Planning Near Weldon Spring

Rollover 401(k) in Weldon Spring, MO | Correct Capital

At Correct Capital, we treat each client individually and get to know them so we can help them achieve their objectives. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience aiding Weldon Spring, MO individuals and families with 401(k) rollovers along with a host of other wealth management services. As fiduciary advisors, we are legally and ethically bound to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we are free to be direct and unbiased, and there are no restrictions to the services or investment opportunities we can recommend.

Call us today at 314-930-401K or contact us online to schedule an appointment with one of our knowledgeable 401(k) specialists and financial advisors today.

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