Rollover 401(k) in Wildwood, MO
Professional, Honest, and Experienced Retirement Planners and Financial Advisors
Rollover 401(k) in Wildwood, MO. Starting a new job in Wildwood, MO is exciting, but it can be hard to know what to do with the savings you have in your existing 401(k). Many Wildwood, MO residents don't have the time, knowledge, 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) specialists and financial advisors will help you navigate your rollover and optimize your 401(k) account. For rollover 401(k) services in Wildwood, MO, call us today at 314-930-401K or contact us online.
Rollover 401(k) Options in Wildwood, MO
Typically, there are four different things you can do with your 401(k) account with your old employer. A professional Wildwood, 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 current financial health and your time horizon, we may advise to:
- Leave the funds in your former employer's 401(k) plan;
- Roll over your 401(k) to a plan with your new employer;
- Roll over your 401(k) into a Traditional IRA or Roth IRA;
- Cash out your 401(k).
Cashing out should only be considered if you need funds quickly. Your previous employer would be obligated to take out 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 potentially pay even more in federal, state, and local taxes. Meaning, you could lose the majority of your savings.
One last consideration to mention is that many employers in Wildwood, 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. Additionally, 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 Wildwood, MO
Your Wildwood, 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:
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 original value 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 difference into a standard brokerage account, and roll the rest of your 401(k) savings to an IRA. By separating your 401(k) into two accounts, 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 is often higher.
Pick Your Own Custodian
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.
More Diverse of Investment Options
While some Wildwood, MO companies offer 401(k) plans with few limitations on your investment options, you will generally have much more control over an IRA than you would in a 401(k) plan. In an IRA, you can invest in any number of assets, including:
- Certificates of deposit
- Mutual funds
- Real estate investment trusts
Combine Your 401(k) Plans
If you change jobs frequently, it could be incredibly helpful to incorporate all of your savings into one place. That will make it easier to track the performance of your funds 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 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 determine if a 401(k) rollover is the best option for you. We have more than two decades of experience helping both individuals and families and business owners in Wildwood, MO with A-Z 401(k) services. When you hire Correct Capital, 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 Wildwood, MO
Every person's finances vary, and your Wildwood, MO retirement planners at Correct Capital may advise that your funds should be left in a 401(k) account; whether that be your previous employer's or your new one. Some of the advantages of a 401(k) plan rather than an IRA are:
- If your current 401(k) plan works for you. If the fees are reasonable and the return on investment is good, it may be your best option 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.
- No early withdrawal penalties if you are 55. While you can begin taking out funds without a fee 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.
- Loans from an IRA are not allowed. While taking a loan from retirement savings isn't advisable, 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 Wildwood, MO:
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
Rollover 401(k) in Wildwood, 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 over 75 years of combined experience assisting Wildwood, MO individuals and families with 401(k) rollovers as part of our comprehensive wealth management services. As fiduciary advisors, we are legally and ethically bound to oversee your account in a way that benefits you and only you. As an independent firm, we are free to be direct and unbiased, and we are not bound to only offer you limited investment opportunities.