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You don’t have to be stranded on a deserted island to lose and old retirement account.
You aren’t alone if you are missing some retirement account assets. Sadly, many have forgotten old 401(k)s or other retirement plan assets. According to Capitalize, a company specializing in 401(k) rollovers, a shocking 20% of all 401(k) assets in the U.S. were in forgotten accounts at the end of 2021.
The days of working for one company your entire career are long gone (for most people). People are jumping from job to job, often leaving a trail of old retirement accounts and even a few pensions. Because of this, a surprising number of people lose track of these accounts. Forgetting your old 401(k)s can hurt your overall retirement security when you factor in compounding interest.
Here are a few tips for those who wonder, ‘Am I missing an old retirement account?’
Do you ever feel like you are forgetting about some old retirement account? Here are some tips to … [+]
How You Can Start Your Search For Lost Retirement Assets
Where you begin your search will likely depend on whether you are sure you had a 401(k), if your previous employer is still in business, and if you have an idea where the account might have been held.
How Do You Know If You Have A 401k?
In a perfect world, you would have an old 401(k) statement or plan benefit information, but I’m guessing that is not the case if you are still reading this post. The next thing to look for would be an old pay stub. If you were contributing to a 401(k), it should be noted as a deduction from your gross pay. You can also check your old tax documents, as 401(k) contributions should be listed on your W-2 from each employer (assuming you made contributions).
Side note: you should always use a personal email for your 401(k) login information and statements. If you use a work email, you can lose easy access to log in or view plan emails when you no longer work for the employer.
Either way, search your email for 401(k); perhaps you will get lucky. Your plan’s information, communication, or other information to help you track down your old 401(k) will pop up.
Check in with you old HR department when try to locate an old retirement account.
How Can You Find A Lost 401(k) Account From Your Current/Recent Employer?
Your first step should be to track down your previous employer’s 401(k) point of contact. This is often someone in HR. Call or send them an email or letter requesting information about your accrued retirement benefits. Of course, this will only work if the company is still in business.
Related: Easy Steps To Retire A 401(k) Millionaire
How Can You Find An Old 401(k) Account From A Previous Employer?
For those who can’t find their former employer, tracking down an old 401(k) can be daunting. However, free help is available from sources like the Labor Department and a few nonprofit pension counseling centers. These centers are funded by the US Department of Health and Human Services (see list at the bottom of this post). The Pension Benefit Guarantee Corporation (PBGC) also provides help tracking down traditional pensions.
Some databases list corporations and bankruptcies. These databases may be able to help you track down the missing retirement plans. Each plan is required to file an annual report form 5500 with the IRS. If you can track down the form 5500, it should contain the plan’s contact information and employer’s identification number. With this information, you can likely track down where the plan is now or who inherited it during a corporate merger.
If your previous employer has terminated its defined benefit pension plan, check with the PBGC. Part of what this agency does is maintain a database of missing participants in the underfunded pension plans it has taken over.
You may discover that you’re missing more pensions than you remembered. I had one client who luckily discovered that they had four missing pensions. While this discovery isn’t going to make my client rich, it was still a good amount of money that will add up over time.
Keeping track of all of your retirement assets is worth celebrating.
Tracking Down Transferred Or Missing Small 401(k) Plan Assets
Searching for old 401(k) assets gets tricky if your accounts have less than $5,000. It turns out you may no longer be searching for an old 401(k) but rather a missing IRA. Federal law allows retirement plans to transfer balances up to $5,000 from the 401(k) to an IRA without additional consent from the participant. While there is no paperwork on the forced rollover, many firms require additional paperwork to update or change your account in any way.
If your old 401(k) was automatically rolled over to an IRA, there is a place to look online. Abandoned Plan Search is a database of companies that accepts transfers of small balances from 401(k) plans. However, the best place to start your search is the investment company that held the 401(k). If your old 401(k) was at Schwab, Fidelity, or Vanguard, your IRA is likely at the same company.
What Happens When A 401(k) Plan Is Terminated?
According to the US Labor Department, 1,650 401(k) plans are abandoned yearly. Was your old 401(k) plan one of them?
Corporations terminate 401(k) plans for a variety of reasons. When they do, they must transfer all accounts to the plan’s participants. When they can’t locate a participant, the firm can send the money to an IRA, a bank, or even a state’s unclaimed property fund. While they must attempt to contact you, I wouldn’t rely on this as a guarantee you will receive information about the plan closing. If you didn’t remember you had a 401(k), I’m going to guess you didn’t remember to keep your contact information up to date.
If you think your old account may have been turned over to the state, search the unclaimed database in the state where you lived when you worked for the specific employer. You should also search in the state where the plan’s administrator was located if you worked for a larger or national corporation.
Starting this year, the PBGC will start accepting transfers of missing participant accounts from terminating 401(k) plans. When a participant is hopefully found, they will be paid that money plus interest. Don’t expect the interest paid to even come close to keeping up with average stock market returns.
What Are Some Databases For Unclaimed Retirement Assets?
Here are some resources to help you find your lost 401(k) or other retirement account.
Labor Department, Employee Benefits Security Administrations Participant and Compliance Outreach
Pension Counseling Projects
Pension Benefit Guarantee Corporation
You can also try MissingMoney.com, a site sponsored by the National Association of Unclaimed Property Administrators that has information about programs in each state.
Yes you can have multiple 401(k)s. You may even have multiple retirement accounts from one … [+]
Can You Have Multiple 401(k) Accounts?
It is possible to have multiple 401(k) accounts. You could easily have one 401(k) from each employer you’ve ever had. Some employers will even offer several retirement accounts.
Can You Find Your 401(k) With A Social Security Number?
Most 401(k) custodians will track your retirement accounts by Social Security number. For example, if you thought your old 401(k) was held at Fidelity, you could ask them to search by your Social Security number to see if you still had an active account there.
What Should You Do When You Get Access To Your Old 401(k)?
At the very least, bookmark the site where you can log in to view your account. You should also update beneficiaries and your contact details and review your investment choices to ensure they are still appropriate for you.
From there, you can figure out what you want to do with your old 401(k). You can potentially roll it over to your current 401(k) or an IRA. You can also leave it where it is and manage the fund there.
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