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How to Find and Handle Your Old 401(k) Accounts

Christopher Demarest |
Categories
Retirement
Personal Finance

When you’ve had multiple jobs over your career, it’s easy to lose track of an old 401(k). If you’ve changed employers and left behind a retirement account, you might be wondering how to locate it and what to do with it. Luckily, finding and managing your old 401(k) doesn’t have to be a daunting task. Here’s a step-by-step guide to help you track down your old accounts and make the most of your retirement savings.

Start with Your Old Employers

The first step in locating a forgotten 401(k) is to contact your former employers. They can provide information about the plan's custodian, which is essential for finding your funds. Here’s how you can approach this:

  • Reach Out to Human Resources: Contact the HR department or benefits administrator at your old workplace. They should have records of your participation in the 401(k) plan and can guide you on how to access it.

  • Provide Necessary Details: When you contact them, be ready to provide your former employee ID, the dates of your employment, and your Social Security number for verification purposes.

Check with the Plan's Custodian

Once you have the contact information for the plan’s custodian, usually a financial institution or investment company, you can reach out to them directly. Here's how:

  • Gather Documentation: Have your personal details and previous plan information handy. The custodian may ask for identification and any paperwork related to your old 401(k).

  • Request Account Information: Inquire about the status of your account, including balance and investment options. You may need to verify your identity before accessing account details.

Utilize Online Search Tools

If contacting your former employer and the plan custodian doesn’t yield results, you can use online tools and resources:

  • National Registry of Unclaimed Retirement Benefits: The National Registry of Unclaimed Retirement Benefits is a free service that helps you locate retirement accounts that may be owed to you. By entering your Social Security number, you can quickly see if there are any unclaimed 401(k) funds that belong to you. The money may still be held in the employer’s plan, or the company may have opened a special IRA account in your name to hold the funds.

  • Department of Labor's abandoned plan database: Another good place to start is with the Department of Labor’s abandoned plan database. It's provided by the Employee Benefits Security Administration. The tool helps you find out if you have a plan that's been terminated, or is in the process of being terminated.

Search for Unclaimed Property

In some cases, 401(k) plans may be turned over to state unclaimed property offices if they are abandoned. You can check with the unclaimed property office in the state where you lived or worked:

  • Visit State Websites: Each state has its own process for handling unclaimed property. Check your state’s official website for instructions on how to search for unclaimed retirement funds.

  • Submit a Claim: If you find your account listed, follow the state’s process to claim the funds. This usually involves filling out forms and providing proof of identity.

Consider Your Options Once Found

After locating your old 401(k), you’ll need to decide what to do with it. Here are some common options:

  • Leave It with Your Old Employer: If your former employer allows it, you can leave the account where it is. This may be a convenient option, but you should be aware of any fees and limitations.

  • Roll It Over to a New Employer’s Plan: If you have a new job with a 401(k) plan, you can roll over the old account into the new plan. This can help consolidate your retirement savings and simplify management.

  • Transfer to an IRA: Rolling over your 401(k) into an Individual Retirement Account (IRA) is another option. This provides more investment choices and can be a good strategy for managing multiple retirement accounts.

  • Cash It Out: Although not generally recommended due to potential taxes and penalties, you can choose to cash out your 401(k). This should be a last resort, as it can significantly impact your retirement savings.

Stay Organized Moving Forward

To avoid losing track of retirement accounts in the future:

  • Keep Records: Maintain accurate records of your retirement accounts, including statements and contact information for plan administrators.

  • Update Your Contact Information: Notify your plan administrators of any changes in your address or contact details to ensure you receive important notifications.

Bottom Line

401(k) plans are among the most powerful retirement savings tools thanks to their tax advantages, high contribution limits, potential for matching contributions, and more. However, it’s easy to lose track of a 401(k) when you leave your job. Unfortunately, that could result in years of retirement savings being lost.

The good news is that even if you have lost track of your old 401(k) plans, there are still ways to find them. By contacting your former employer, reviewing your old records, taking advantage of online resources, or searching among the many databases available, you can track down your retirement dollars and transfer them into an account where you can easily keep track of them.

If you have 401(k) dollars with former employers and haven’t rolled them into a current retirement account, we can help you track them down today and together decide on your next steps to secure your retirement funds.