Imagine working hard to save money for retirement, only to lose track of your account and leave your money unclaimed.
It might sound far-fetched, but it’s the reality for millions of Americans. Research from Capitalize found that by May 2023, 29.2 million 401(k) accounts had been forgotten. These accounts hold a whopping $1.65 trillion in assets — about 25% of all 401(k) assets in the U.S.
How to track down unclaimed retirement accounts
A simple way to find unclaimed retirement money is coming soon. The SECURE 2.0 Act mandates the creation of a Retirement Savings Lost and Found database. This will help 401(k) participants and beneficiaries find money they left behind.
The database started collecting information from plan administrators in November 2024 and is expected to launch by December 29, 2024. When it does, you’ll be able to input your information and conduct a search to find all your missing accounts.
Although the government has faced some challenges in gathering data, the Employee Benefits Security Administration (EBSA) has stressed ongoing cooperation with plan administrators to build a comprehensive database.
What to do before the database launches
Here are some other options for finding unclaimed 401(k) funds:
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Contact past employers. If you suspect you may have had a 401(k) at an old job, give the company a call.
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Check Social Security notices. The IRS receives notice of vested benefits and sends the info to Social Security which may send you a letter
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Contact the EBSA. The Employee Benefits Security Administration can help you reclaim lost funds.
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Search for abandoned plans. The Department of Labor’s Abandoned Plan database can help you find terminated plans from companies.
Taking these steps is worth it. You’ve worked hard to invest your money — don’t let it go unclaimed when it could help you in retirement.
How to avoid losing track of your 401(k)
Finding old 401(k) accounts can get complicated, especially if you don’t they’re missing. To avoid this, take steps to manage your accounts proactively:
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Roll over your 401(k) when leaving a job. Instead of leaving it with your former employer, transfer the funds into an IRA at a brokerage firm. This way you can consolidate your retirement savings in one place.
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Choose an online brokerage account. These platforms offer a wider range of investment options than most 401(k) plans. Plus, having all your accounts in one spot reduces the risk of forgetting about them.
By managing your 401(k) accounts actively, you’ll avoid leaving money on the table — and ensure your hard-earned savings stay within reach for a secure retirement.