How to Find A Lost 401(k): The Best Ways to Track Down Forgotten Retirement Funds

U.S. workers are switching jobs more frequently than ever before, with the average employee staying at a company for just 3.9 years as of January 2024, according to data from the U.S. Bureau of Labor Statistics.

This trend of job-hopping can make it difficult to keep track of retirement accounts. In fact, as of May 2023, there were an estimated 29.2 million forgotten 401(k) accounts, totaling $1.65 trillion, or 25% of all 401(k) assets, according to Capitalize, a platform that helps people roll over their 401(k)s.

If you think you might have lost track of your own 401(k) accounts, here are some steps to help you locate your forgotten funds.

4 Ways To Find A Lost 401(k)

  1. Look For Old 401(k) Statements
    Start by digging through old plan statements, whether they were mailed to you or sent electronically. These documents will list the employers you worked for when you participated in the plan, making it easier to figure out who to contact for access to your account. You can also reach out to former coworkers who are still with the company for guidance.
  2. Contact Former Employers
    If you can’t find any old statements, your next best option is to contact the HR department or whoever handled benefits at your previous employers. Provide them with your name and Social Security number, and they should be able to confirm whether you were enrolled in a 401(k) plan during your time there.
  3. Search The Department Of Labor’s Resources
    The Department of Labor’s website is another great tool. You can find the company’s Form 5500, which is an annual report for employee benefit plans, to locate the plan administrator’s contact information. Additionally, FreeERISA is a free resource you can use after registering, which may help you find more details about your lost account.
  4. Search For Unclaimed Assets
    If you’re still having trouble locating your 401(k), try searching publicly available databases for unclaimed assets. The National Registry of Unclaimed Retirement Benefits allows you to enter your Social Security number to check if there are any 401(k) funds belonging to you. If the money is still with your former employer’s plan, the company may have also opened an IRA account in your name to hold the funds. Additionally, the National Association of Unclaimed Property Administrators offers a searchable site where you can look for any unclaimed assets across different states.

What to Do Once You Find Your Lost 401(k)

Once you track down your old 401(k) accounts, you’ll need to decide what to do with them. Here are your options:

  • Roll Over To Your Current Employer’s Plan
    If your current employer offers a 401(k) plan, rolling over your old account into this plan can make it easier to manage all your retirement funds in one place. Keep in mind, though, that the investment options in most 401(k) plans can be limited.
  • Roll Over To An IRA
    For most people, rolling over a 401(k) into an Individual Retirement Account (IRA) is the best choice. Since IRAs are not tied to an employer, you’ll have more flexibility and control over your investments. IRAs typically offer a broader range of investment options, including stocks, mutual funds, ETFs, and more. If you don’t have an IRA yet, the process to open one is simple and can be done through most online brokers.

Bottom Line
Tracking down lost or forgotten 401(k) accounts is an important step in maximizing your retirement savings. Even if the balance seems small, those funds can grow over time through compound interest. Consolidating your old 401(k)s into one account, whether a current plan or an IRA, can simplify your finances and help you stay on track toward meeting your long-term financial goals.

 

Source: Bankrate