Rollover 401(k) in Wentzville, MO

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

Rollover 401(k) in Wentzville, MO. While moving to a new job can be a welcome change, it can also create uncertainty about the best way to manage the savings you have in your existing 401(k). Many Wentzville, MO residents don't have the time, financial literacy, or interest to oversee multiple retirement accounts or to carefully weigh their best options when considering 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 Wentzville, MO, give us a call at 314-930-401K or contact us online.


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

In general, there are four different things you can do with your 401(k) account with your old employer. A qualified Wentzville, MO financial advisor like those at Correct Capital will be able to look at your financial situation and help you decide which option is best for you. Depending on your specific circumstances, we may advise to:

  1. Leave the money 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. Take the cash value out of your 401(k).

Taking out the cash value is only truly an option if you need funds quickly. Your previous employer will have to withhold 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 account's value.

It is important to mention that many businesses in Wentzville, MO require you to roll over the funds to an IRA or new 401(k) 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 Wentzville, MO

Your Wentzville, 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:


Take Advantage of Special Rules if You Have Publicly Traded Company Stock in Your 401(k)

Net unrealized appreciation (NUA) is the increase in value between the original value and market value of shares of employer stock in your 401(k) plan. If you won shares of your previous company in your 401(k), you can transfer that increase in value into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. The advantage of this is that you may pay long term capital gains tax on your company stock — which caps out at 20% for the highest earners — rather than income tax, which is often higher.


The Financial Institution of Your Choice

In a 401(k) plan, you will not have any control over the 401(k) company that holds your savings. When you do a 401(k) rollover to a Traditional or Roth IRA, you'll have your pick of institutions based on how secure they are and the range of services they offer.


A Wider Array of Investment Options

While some Wentzville, MO businesses provide 401(k) plans that allow for a wide range of investment opportunities, 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:

  • Stocks
  • Bonds
  • Certificates of deposit
  • Mutual funds
  • Exchange-traded funds
  • Real estate investment trusts
  • Annuities

Combine Your Savings Accounts

If you have several 401(k) plans spread across multiple former employers, it may make the most sense to incorporate all of your savings into one place. That way, you much much more efficiently track how your investments are growing and managing them will be more streamlined. Sustained long-term growth may also be more attainable.


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. By rolling over the funds into an IRA, you continue adding more money over time.

The financial advisors of Correct Capital will guide you in your decision of what to do during a 401(k) rollover. We have over 20 years of experience assisting both individuals and families and business owners in Wentzville, MO with numerous 401(k) services. When you retain our services, we'll help you navigate special considerations, such as required minimum distribution model makes the most sense for you.

When to Avoid a 401(k) Rollover in Wentzville, MO

Every person's finances vary, and your Wentzville, MO retirement planners at Correct Capital may advise that your funds are better off in a 401(k) plan; either your an old plan or rolling them over into a new one. Some of the advantages of a 401(k) plan over an IRA include:

  • If your current 401(k) plan works for you. If the fees aren't exorbitant and you're getting strong returns, there may not be a great reason to roll over your 401(k). 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 fees if you are 55. While both 401(k)s and IRAs allow for withdrawals when you are 59½, you will not have to pay 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 note that you cannot take a loan out of an IRA.
  • Your employer can put matching contributions into your 401(k) account. Employers may contribute a full or partial match into a 401(k), while an IRA would only include the money you put into it.

Take a look at some of the other services we offer in Wentzville, MO:

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

Rollover 401(k) in Wentzville, MO | Correct Capital

At Correct Capital, we treat each client individually and get to know them so we can help them reach their objectives. Our team of retirement consultants, portfolio managers, and financial planners have nearly a century of combined experience helping Wentzville, MO individuals and families with 401(k) rollovers as part of our all-inclusive wealth management services. As fiduciary advisors, we are legally and ethically obligated to oversee your account in a way that benefits you and only you. As an independent firm, we will always 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 qualified 401(k) specialists and financial advisors today.

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