Rollover 401(k) in Westwood, MO

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

Rollover 401(k) in Westwood, MO. While moving to a new job can be a welcome new opportunity, it can also create confusion about the best way to manage the savings you have in your 401(k) account with your previous employer. Many Westwood, MO residents don't have the time, knowledge, 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) specialists and financial planners will help you understand your options. For rollover 401(k) services in Westwood, MO, give us a call at 314-930-401K or contact us online.


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

In general, there are four ways to approach your 401(k) rollover. A professional Westwood, MO financial advisor like those at Correct Capital will consider your assets, savings, and 401(k) plan and guide you towards what will work best for you. Depending on a variety of factors, it may be best to:

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

Cashing out should only be considered if you need funds quickly. Your previous employer would be required to withhold 20% of the savings for tax purposed. You may also face a 10% early withdrawal penalty from the IRS, and you would also have to pay federal, state, and local taxes. Meaning, you could lose the majority of your savings.

Another thing to mention is that many employers in Westwood, MO require you to move the funds in your 401(k) if your account has less than $5,000 in it. Additionally, 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 Westwood, MO

Your Westwood, MO financial advisors at Correct Capital may advise rolling over your 401(k) into an Individual Retirement Account (IRA). There are a variety of benefits to this strategy:


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 current 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 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 your company stock — which is 0%, 15%, or 20%, depending on your income — rather than income tax, which may be considerably more.


Pick Your Own Custodian

In a 401(k) plan, 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 stability, trading technology, and financial services.


More Diverse of Investment Options

While some Westwood, 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:

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

Combine Your Savings Accounts

If you change jobs frequently, there are many advantages to incorporating the entirety of your retirement funds into one place. That will make it easier to track the performance of your funds and managing them will be more streamlined. It may also be the better option for long-term growth.


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. 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 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 assisting both individuals and families and business owners in Westwood, MO with A-Z 401(k) services. When you retain our services, we'll help you navigate special considerations, such as whether a traditional or Roth IRA is best for you.

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

Depending on your time horizon and other factors your Westwood, MO retirement planners at Correct Capital may recommend that your savings should be left in a 401(k) account; either your previous employer's or your new one. Some of the advantages of 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 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.
  • No early withdrawal penalties if you are 55. While both 401(k)s and IRAs permit 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 need or want the money sooner.
  • Loans from an IRA are not allowed. While taking a loan from retirement savings isn't advisable, it is important to mention that you cannot take a loan out of an IRA.
  • Your employer can put matching contributions into your 401(k) plan. While some employers will allow you to roll money out of your 401(k) to an IRA while you are still working, it may make more sense to stick with a 401(k) your employer will match your contributions.

See some of the other services we offer in Westwood, MO:

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

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

At Correct Capital, we treat each client individually and get to know them so we can help them reach their goals. Our team of retirement consultants, portfolio managers, and financial planners have over 75 years of combined experience assisting Westwood, 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 act only in your best interested. As an independent firm, we will always be direct and objective, and there are no limitations to the services or investment options we can recommend.

Reach out to us 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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