Rollover 401(k) in Wildwood, MO

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

Rollover 401(k) in Wildwood, MO. While moving to a new job can be a welcome new opportunity, it can be hard to know what to do with your existing 401(k). Many Wildwood, MO residents have found that enlisting the services of professional financial advisors is the best way to manage a 401(k) rollover. At Correct Capital, our dedicated team of 401(k) experts and financial planners will help you get the most out of your savings. For rollover 401(k) counseling in Wildwood, MO, call us today at 314-930-401K or contact us online.


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

Typically, there are four different things you can do with your 401(k) account with your old employer. A knowledgeable Wildwood, MO financial advisor like those at Correct Capital will consider your assets, savings, and 401(k) plan and help you decide which option is best for you. Depending on your current financial health and your time horizon, we may advise to:

  1. Keep your 401(k) with your old employer;
  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).

Cashing out is not recommended unless you need money now. Your previous employer will have to take out 20% of the balance to prepay the taxes you would owe 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. Cashing out could leave you with less than 50% of your savings.

Another thing to mention is that businesses in Wildwood, MO are allowed to make you move the money if your plan has less than $5,000 in it. Furthermore, you may be required to cash out your plan if the balance is 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 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 original value and current value of shares of employer stock in your retirement account. If part of your 401(k) includes company stock, you can transfer that increase in value into a standard brokerage account, and roll the other funds to an IRA. In doing so, you may pay long term capital gains tax on the shares — which is 0%, 15%, or 20%, depending on your income — instead of income tax, which is often higher.


The Custodian of Your Choice

In a 401(k) plan, your employer will decide the 401(k) company holding your funds. By rolling over to an IRA, you'll be able to choose your preferred custodian based on stability, trading technology, and financial services.


More Diverse of Investment Options

While some Wildwood, MO employers provide 401(k) plans with few limitations on your investment opportunities, you will generally have much more flexibility in an IRA than you would in a 401(k) plan. IRAs typically allow investment in almost any type of asset, including:

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

Combine Your 401(k) Plans

If you have various 401(k) plans with previous employers, it could be incredibly helpful to combine all of your savings into one account. In doing so, it won't be nearly as much of a hassle to track how your savings are growing and you will be able to manage them more directly. 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. If you roll the funds out of your old employer's plan, you continue adding more money over time.

The financial advisors of Correct Capital will help you decide if a 401(k) rollover is the best option for you. We have over two decades of experience helping both individuals and families and business owners in Wildwood, MO with comprehensive 401(k) services. When you meet with us, we'll guide you through special considerations, such as which type of savings plan fits best in your portfolio.

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

Each of our client's financial situation is unique, and your Wildwood, MO retirement planners at Correct Capital may advise that your savings 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 aren't exorbitant and your savings are growing as you'd like them to, it may make the most sense to keep your savings where they are. If the account stops giving you strong returns or you change your mind for another reason, you retain the right to roll over the funds whenever you'd like.
  • No early withdrawal penalties if you are 55. While both 401(k)s and IRAs permit withdrawals when you are 59½, a 401(k) does not include a 10% early withdrawal fee if you are 55. A 401(k) may be best if you're considering early retirement.
  • You cannot take a loan out of an IRA. While typically not recommended, 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 either a Traditional or Roth IRA.
  • Your employer may match your 401(k) contributions. 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 keep contributing to your 401(k) to receive an employer match and keep your retirement assets in one place.

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

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

Rollover 401(k) in Wildwood, 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 nearly a century 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 required to do what's best for you and disclose any potential conflicts of interest. As an independent firm, we will always be straightforward and unbiased, and we are not bound to only offer you limited investment opportunities.

Reach out to us today at 314-930-401K or contact us online to schedule an appointment with one of our knowledgeable 401(k) experts and retirement consultants today.

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