More than $1.65 trillion sits in lost or forgotten 401(k) accounts. The average unclaimed balance is $56,616 -- a lot of money for someone to lose sight of, to be sure. Yet, it's easy to understand how it might happen.
Given that workers born between 1957 and 1964 held an average of 12.4 jobs before age 54, it's no surprise that some accounts fell through the cracks. Say a person was suddenly laid off and had to relocate to another state for new employment. In the flurry of activity that comes with job hunting and moving, that former employee might forget to deal with the funds in a 401(k).
If there's any chance you've left a 401(k) somewhere (no matter how small you expect the balance to be), here's how you can go about claiming it.
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Reach out to your former employer
Locating a 401(k) may be as easy as contacting previous employers to ask if they hold any accounts in your name. If the company is out of business, contact the plan administrator. If you're unsure who your plan administrator is, search on the Department of Labor's EFAST tool, which keeps plan information dating back to 2010. Begin with the Form 5500 Series Search.
Check out these three websites
No matter how you feel about the internet, there's no denying that it can come in handy when you're looking for someone -- or something. That includes old 401(k) accounts. The following three websites can help you home in on where your account may be and give you the tools to recover it.
National Registry of Unclaimed Retirement Benefits
The National Registry is a great way for current and former employees to determine if there's a retirement plan out there with their name on it. When you perform a search through its site and find retirement money belonging to you, the registry contacts your former plan sponsor or the custodian holding your retirement money.
If you would prefer to contact your sponsor or custodian yourself, you're welcome to do so. There is no charge for using the site.
To learn if funds are waiting for you, you'll be prompted to enter your Social Security number on the search page. If there's a match, you'll immediately be shown the names of any employer or financial institution holding retirement funds on your behalf.
Once you provide the registry with your contact information, an email will automatically go out to the organization that initially registered you in the database. In the meantime, you'll be sent a Benefit Election form that lets your former employer or current custodian know how you would like to receive the funds. You decide whether you want a lump sum distribution or would prefer to roll the money over to another retirement account.
Retirement Savings Lost and Found Database
This database, provided by the Employee Benefits Security Administration (EBSA), is yet another way to search for unclaimed retirement funds. It is designed to help you locate lost or forgotten accounts and provide information on how to claim them.
To access this site and keep your personal information secure, you must verify your identity through Login.gov. If you have an existing Login.gov account, you may be asked to provide additional information. If not, you can set up a new account by providing:
- Your legal name
- Date of birth
- Social Security number
- Mobile number
- Front and back pictures of an active drivers license
Once your identity has been verified, you'll be directed back to the Lost and Found database to search for any retirement plans associated with your Social Security number.
While the website can help you find defined-contribution plans like 401(k)s, annuities or lump-sum payments due, it can't help you find individual retirement accounts (IRAs) or plans sponsored by government or religious entities. In other words, it searches for retirement benefits provided by private-sector employers or unions.
The site is a good way to spark your memory, but there is one fly in the ointment: The search results only show that you participated in a retirement plan. It's possible that the money has already been rolled over into another retirement account, provided as an annuity, or otherwise paid out to you.
Missing Money
Missing Money is another free search and filing system. When you file a claim through this site, it goes directly to the state where your property is held. Missingmoney.com is a clearinghouse for all kinds of unclaimed property, including retirement accounts.
Your search begins with typing your name on the home page and waiting to see what pops up. You can search in a specific state or ask the site to check all 50 states. Once you find missing property in your name, you hover over an "info" button, and a link appears to the state that you'll file your claim through.
The website is updated daily, giving you access to the latest list of lost or forgotten money.
No matter which type of retirement account you're missing, recovery is possible. It all begins with calling your former employer, and if that doesn't work, conducting an online search.
