A Survey Says Many Workers Lose Track of Old 401(k) Money, and Here Is How to Find It
A new survey reported by 24/7 Wall St. finds that about a third of Americans may have lost track of retirement savings left behind at a former job. There are several free ways to hunt down the money, including a federal database.
Changing jobs is normal, but a new report is a reminder that each move can leave money behind. According to the financial news site 24/7 Wall St., which wrote about a survey from the retirement company Empower, about 34 percent of Americans may have lost track of savings in a 401(k) plan from a former employer. The problem is even more common among younger workers, with half of those in Generation Z and 45 percent of millennials possibly out of touch with an old account. The survey questioned just over 2,000 adults in late July and early August.
Why does this happen so often? People simply forget, or they assume a small balance is not worth chasing. 24/7 Wall St. also pointed to research from Fidelity, which found that the typical American worker now passes through six employers over a career. Fidelity also found that 23 percent of people with retirement accounts hold more than one account left over from a past or current job.
The good news is that lost money can usually be found, and it belongs to you. Here are the main places to look.
- Call the human resources or benefits office at a former employer and ask about any plan you were part of.
- Dig out old W-2 forms and account statements, which often list the plan and the company that ran it.
- Search the U.S. Department of Labor's Retirement Savings Lost and Found database using your Social Security number.
- Check your state's unclaimed property office, where forgotten accounts sometimes end up.
One caution is worth noting. The federal Lost and Found tool is built to help locate workplace plans, so it may not turn up money held in an IRA, and finding a listing does not by itself prove money is still owed to you.
For readers 50 and older, tracking down an old account can matter more than it might seem. Rolling a forgotten balance into a current plan or an IRA can make it easier to manage, and even a modest sum can keep growing as you head toward retirement. A quiet afternoon with your old paperwork could turn up savings you had written off.
Go Deeper
How many people lose track of old retirement accounts?
A survey from the retirement company Empower, reported by 24/7 Wall St., found that about 34 percent of Americans may have lost track of savings in a former employer's 401(k) plan. The share was higher for younger workers, at half of Generation Z and 45 percent of millennials.
Why does this happen so often?
People forget or assume a small balance is not worth chasing. Fidelity found that the typical worker now passes through six employers over a career, and that 23 percent of people with retirement accounts hold more than one account left over from a past or current job.
What is the best free way to search for lost money?
You can search the U.S. Department of Labor's Retirement Savings Lost and Found database using your Social Security number. You can also call former employers, review old W-2 forms and statements, and check your state's unclaimed property office.
Will the federal database find all my money?
Not necessarily. The Lost and Found tool is built for workplace plans, so it may not turn up money held in an IRA, and a listing by itself does not prove money is still owed to you.
What should I do once I find an old account?
You can roll a forgotten balance into your current plan or an IRA to make it easier to manage. Even a modest sum can keep growing as you head toward retirement.
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