How to Find Old 401(k) Accounts
The average American changes jobs multiple times throughout their career, but it's common to inadvertently leave behind substantial sums in retirement plans with previous employers. Some do it consciously, while others simply don't know what their options are. In any case, actively managing your retirement funds always beats leaving money on the table, and you can do so by understanding your 401(k), learning how to find old accounts, and determining what to do with them.
Understanding Old 401(k) Accounts
A 401(k) is a tax-advantaged retirement savings plan that is offered by employers. It allows you to save and invest a portion of your paycheck before taxes are taken off, but many people lose track of the old accounts when they change jobs. Once you're settling in at your new job, you probably aren't thinking about your old 401(k) account and it becomes forgotten, joining the vast collection of abandoned accounts that make up many people's fragmented retirement portfolios.
Naturally, this can hinder your financial growth and even diminish the overall effectiveness of your retirement planning strategy—which is why it's important to scoop up those old accounts and regain control over your financial future.
Step 1: Gather Your Information
Review Personal Records
The first thing you'll need to do is gather your personal information and review all relevant records. You can start by checking old plan statements and tax documents as these will contain valuable details regarding previous retirement accounts where you were an active plan participant. You can also look for your W-2 forms which will list your employers and the contributions made to your past 401(k) plans. These types of documents will help you determine where old accounts may be held and give you a hand in tracking down any forgotten savings.
Contact Former Employers
After collecting your personal records, you'll want to get in touch with the human resources department at your places of previous employment to inquire about your old accounts. Once you have their contact information you can reach out by phone or email and possibly connect with their plan administrator for additional insight or documentation. You'll need to provide some essential information including your full name, phone number, Social Security number (SSN), dates of employment, and any specific plans you know you participated in.
Step 2: Utilize Online Resources
Department of Labor Resources
Online resources and specifically the Department of Labor (DOL) tools will be essential to your search. All employers are required to file Form 5500 each year which you can access from the DOL's Form 5500 database. This form provides important information regarding a 401(k) plan's financial condition, qualifications, and operations, serving as a valuable tool for tracking down old retirement accounts. Using the database, you should be able to access contact information for plan administrators as well as other plan details.
Unclaimed Property Databases
Another way to locate forgotten retirement savings accounts is to check out unclaimed property databases. The National Registry of Unclaimed Retirement Benefits is a comprehensive database where you can search for unclaimed accounts using your Social Security number. The registry includes information submitted by companies and financial institutions when they can't locate beneficiaries which makes it a highly valuable resource for tracking down your old lost or forgotten 401(k) accounts. You can also check out the National Association of Unclaimed Property Administrators, FreeERISA, or MissingMoney.com to find additional records.
Your specific state's unclaimed property website or abandoned plan database may provide you with additional options for finding these accounts and often include a wider range of unclaimed property and personal finances. If you're concerned that you may have forgotten finances lying around, you may wish to conduct an abandoned plan search using these resources as well.
Step 3: Explore Financial Services
Consult a Financial Advisor
If you aren't sure about the process of locating your old retirement accounts, you can always get in touch with a professional advisor or financial planner. This can help if you're feeling overwhelmed or uncertain about the process and need some assistance in identifying your forgotten plans, or if you want professional investment advice on whether to roll over your funds or make other personal financial decisions.
PensionBee and Similar Services
Financial services such as PensionBee can help you capitalize on your old lost and forgotten accounts by simplifying the process of locating and managing them. These types of services specialize in doing just that as well as consolidating found plans into a single platform and rolling them over into productive Individual Retirement Accounts (IRAs). If you want streamlined communication with plan administrators, personalized guidance on managing your retirement money, and the potential to improve your investment strategies, this is a simple and effective option to choose.
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Get startedStep 4: Decide What to Do with Found Accounts
Options for Managing Old 401(k)s
Once they've been found, you'll need to decide what you'd like to do with your 401(k) accounts to manage them effectively. A popular option is to roll over your account balances into a new employer's retirement plan so that everything is in one location and you can continue to benefit from employer contributions. Another option is to rollover into an IRA such as a Roth IRA or mutual fund IRA which provides a wider range of investment choices and better control over your retirement savings. Ultimately, you should choose the option that best suits your personal financial planning goals.
Understanding the Implications of Each Option
When you find your old 401(k) accounts, it's important to remember that you have options for managing them. You can choose to rollover funds from your past plans into an IRA, combine them into your current employer's plan, or cash them out. Cashing out is the least favorable, however, as employers can force minimum distributions on amounts under $1,000. This means you'd need to pay income tax to the IRS and potentially face early withdrawal penalties. This is why making an informed decision is critical to your overall financial success.
Step 5: Keeping Track of Your Retirement Savings
Best Practices for Future Tracking
Keeping track of your retirement savings is essential for making sure that more money ends up in your bank account when you need it. Setting regular reminders for reviewing your accounts is an effective practice and gives you a quarterly or annual opportunity to assess the performance of your funds and make any adjustments. There are various tools and apps you can use to track accounts and monitor your investment options as well, many of which provide a user-friendly method of staying up to date on information from multiple accounts.
Frequently Asked Questions (FAQs)
Is there a way to check for old 401(k) accounts?
Yes, you can check for old 401(k) accounts by contacting your former employers, reviewing your old plan statements, or by using online databases such as the National Registry of Unclaimed Retirement Benefits, the National Association of Unclaimed Property Administrators, or other state-specific websites.
Can I find my 401(k) with my Social Security number?
Yes, you can find your 401(k) using your Social Security number by entering it into registries such as the National Registry of Unclaimed Retirement Benefits which helps you locate lost or forgotten accounts.
What happens to old 401(k) accounts?
Your old 401(k) accounts will stay dormant until you choose to either leave them with your previous employer, rollover into an IRA, rollover to a new employer's plan, or cash them out. Keep in mind the possible taxes and penalties involved in your choice.
Can you find your own 401(k)?
Yes, you can locate old 401(k) accounts on your own by reaching out to former employers, reviewing old account statements, or using online resources and databases designed for tracking down lost retirement accounts.
What is a financial advisor?
A financial advisor is a professional who offers guidance on financial planning, investment strategies, and retirement savings. They help everyday people make informed financial decisions that can benefit their futures.
How do I track down a lost 401(k) account from a previous job?
To track down a 401(k) account from a previous job, you can start by contacting your former employer's HR department or plan administrator. You may also want to review online property databases and use the DOL's Form 5500 search function.
Let PensionBee Do the Work
Tracking down your old 401(k) accounts is important for maximizing your retirement savings, but the bottom line is that so much is left unclaimed. There's no doubt that taking the initiative to locate and manage these accounts can have a positive and significant impact on your long-term financial health, and it doesn't have to be a pain. PensionBee can help you simplify the process while giving you more control over how your retirement savings are working for you. We'll scour the earth for your old accounts and roll them over into a new PensionBee IRA that you can manage easily on your phone or computer.
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Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.
