A record 47 million Americans quit their jobs in 2021 alone, during the Great Resignation. With such frequent job changes, workers might lose track of retirement accounts, especially when they have only accrued a few thousand dollars initially. Over time, however, these balances can grow substantially due to investment returns, often turning into significant sums.
“Given that most 401(k) funds are invested in stocks, the market’s gains over the decades can turn a small initial sum into a much larger amount,” said Greg McBride. Tracking down lost 401(k) accounts has never been easier, according to experts. Here’s a step-by-step guide to help you find lost retirement funds:
Low-Hanging Fruit
- National Registry of Unclaimed Retirement Benefits: This national database serves as a starting point for searching for unclaimed 401(k) accounts. Enter your Social Security Number and run a quick search.
- The Department of Labor’s New Site: Launched to help workers locate unclaimed benefits, this site is gradually becoming comprehensive. Rita Assaf, vice president of retirement savings at Fidelity, notes that while it’s still scaling up, it’s a convenient resource.
- Missing Money: A clearinghouse of unclaimed property held by U.S. states and Canadian provinces, Missing Money can also direct users to unclaimed retirement accounts.
Tracking lost retirement funds
Some Effort Required
1. Search Your Employment Records: Look for old retirement plan statements, pay stubs, and W-2 forms indicating contributions to retirement plans.
2. Contact Old Employers: Reach out to the human resources department of your former employers.
They might know if you participated in a 401(k) and, if so, which company administered the plan.
3. Contact Plan Administrators: If you know which plan administrator held your account, contact them directly.
Provide your Social Security Number and other identifying information to help the administrator find any old retirement accounts under your name.
4. Check for Liquidated Accounts: For retirement accounts with a balance under $1,000, the plan administrator may have liquidated the account and sent a check to your last known address.
For slightly larger balances, the account may have been rolled into an IRA at another financial institution. Several other resources can help locate abandoned retirement accounts. The Department of Labor offers tools to help locate terminated plans and a database of Form 5500 filings, filed annually for 401(k) plans.
Though the records only go back to 2010, they can still be useful. Experts believe that fewer 401(k) accounts will go missing in the future due to the concept of “auto-portability” in retirement plans. This initiative ensures that when workers leave a job, their 401(k) funds automatically transfer to a retirement plan at their new employer.
The program, which applies to accounts valued at $7,000 or less, aims to prevent accounts from being cashed out or forgotten, thus preserving the potential for compounded interest over time.
A consortium of private retirement plan providers announced an initiative in 2022 to enhance the portability of small retirement accounts, ensuring that funds can be transferred seamlessly from one job to another. Whether you have a few thousand dollars or a substantial sum, taking steps to track down lost 401(k) accounts can pay off significantly in the long run.