It’s surprisingly common to lose track of a 401k account after switching jobs. Life gets busy, and those old retirement accounts can slip out of mind. But those misplaced funds are important for your future financial security. Luckily, there are ways to find them!
Why Finding an Old 401k Matters?
- Fees Can Erode Your Balance: Many plans charge administrative fees; an unattended account could slowly shrink over time.
- you Have More Control: By consolidating accounts, you can manage your investment mix more strategically.
- Missed Growth Opportunities: Those forgotten funds aren’t benefitting from potential market growth.
How to Locate an Old 401k?
3 Steps to Find Your Missing 401k.
1. Check Old Paperwork
- Old Statements: Check your files or online banking records. Even a partial statement can provide valuable information.
- Tax Records: Look for past W-2 forms listing employer contributions to a 401(k).
2. Contact Your Former Employer
- Call your old company’s HR or benefits department.
- If the company merged or went out of business, find out if the 401(k) plan was transferred to another administrator.
3. Search Online Resources
- National Registry of Unclaimed Retirement Benefits: Search with your Social Security Number for free (https://www.unclaimedretirementbenefits.com).
- Department of Labor’s Abandoned Plan Database: (https://www.askebsa.dol.gov/abandonedplansearch)
- MissingMoney.com or your state’s Unclaimed Property Office (https://www.missingmoney.com) can help locate accounts that have been turned over to the state.
What to Do Once You Find Your 401k?
You have a few options:
- Leave it Where It Is: If you are happy with the plan’s fees and investment choices, there might be no need to move the funds.
- Rollover to an IRA: Rolling your old 401(k) into an IRA often offers greater flexibility, more investment options, and potentially lower fees.
- Rollover to Your Current 401(k): Consolidating accounts can make managing your retirement savings easier (but verify your current plan will accept rollovers).
- Cash Out (Least Recommended): This should be used as a last resort, as you will incur taxes and possibly early withdrawal penalties.
Tips: Always let plan administrators know of any address or name changes. If you need guidance, a financial advisor can help track down old accounts and advise you on the best course of action.
People change jobs an average of 12 times in their career, making it easy to lose track of retirement accounts. Taking the time to find and consolidate old 401(k)s can play a significant role in reaching your long-term financial goals. Don’t let “out of sight, out of mind” cost you retirement savings. Proactively finding and managing your old 401(k) plans is an essential part of securing your financial future.