Some say the best money is found money. But on the flipside, forgetting about money that’s rightfully yours is something you hope never happens. While you might think you’ve been meticulous about your retirement accounts, losing track of old accounts is more common than you might think.
What is a “forgotten” retirement account?
A forgotten retirement account is any retirement account where the account holder is unaware of its existence. This might sound farfetched, but consider this: each time you change your job you may be enrolled in a new employee-sponsored retirement plan.
Today, employees are changing jobs more than ever. According to the Bureau of Labor Statistics, the average person holds more than 12 jobs between the ages of 18 and 54. This is likely a big reason why forgotten retirement accounts hold assets that total total $1.65 trillion.
Consider someone who has changed jobs 10+ times throughout their career. Do you think they are still keeping track of the 401(k) account from their first job? If not, they could have at least one forgotten retirement account on their hands.
Finding your lost retirement accounts
Worried that you might be one of the millions of Americans with a forgotten account? There are a few places you can search to find a forgotten retirement plan.
National Registry of Unclaimed Retirement Benefits
Your first search for a forgotten retirement account should be at the National Registry of Unclaimed Retirement Benefits. This free database utilizes the Department of Labor where you can find unpaid or lost retirement account funds. Keep in mind that you’ll need to submit your social security number to verify your identity.
FreeERISA
The FreeERISA database may hold information for your account if its value was more than $1,000 but less than $5,000. When an employee doesn’t respond to communications after an extended time, the employer can convert a retirement account into a traditional IRA.
The U.S. Department of Labor
This government department can identify retirement plans that have seemingly been abandoned and may be in the process of termination. If you find your retirement account on the Department of Labor website, you’ll need to contact the qualified termination administrator (QTA) to gain access to your account.
Additionally, the Department of Labor has an EFAST tool which is helpful for finding plans from companies that have closed or merged. This is helpful if you know where your retirement plan was located, but can no longer get in contact with your previous employer or plan administrator.
What next?
Now that you’ve found your forgotten retirement plan, you will want to roll over your funds into your current 401(k) or IRA plan. Consolidating your assets will make it easier for you to keep track of your money over time. Plus, this will allow you to readjust your investment strategy to meet your current financial needs and goals.
Bonus: Find other lost funds
Retirement accounts aren’t the only financial assets that you might not realize you still own. Here are several additional resources to help you ensure you have not forgotten about financial accounts:
NAUPA: Unclaimed property
Labor Department: Owed wages and back pay
Pension Benefit Guaranty Corporation: Pension funds
FDIC: Accounts at failed banks
NCUA: Accounts at failed credit unions