How to Find Out If You Have 401(k) Money
Have you lost track of old 401(k) funds? Learn how to find and reclaim your valuable retirement savings.
A 401(k) is an employer-sponsored retirement savings plan. Many individuals lose track of these accounts, especially after changing jobs, leading to forgotten or unclaimed retirement savings. This article provides steps and resources to help locate such funds.
Checking Your Personal Records and Former Employers
Start by reviewing your personal financial records from past employment. Look for old pay stubs or W-2 forms, where Box 12 might indicate 401(k) participation. Annual statements or benefits enrollment packets can also provide information, such as the plan administrator’s name or account numbers. Identifying the financial firm that held the account is important.
After gathering documentation, contact the human resources (HR) or payroll department of your former employer. Provide identifying information like your full name, Social Security number, and employment dates. Employers are required to provide information about past retirement plans to former employees. If they provide a plan administrator’s name, contact that financial institution directly. Administrators can provide account details with identifying information.
Utilizing Online and Governmental Search Resources
Beyond direct contact with former employers, several online and governmental resources can assist in locating forgotten retirement funds. The National Registry of Unclaimed Retirement Benefits is a private database where companies can register unclaimed 401(k) accounts to help reunite former employees with their savings. You can search this registry, often using your Social Security number, to see if any of your accounts are listed.
The Department of Labor (DOL) and its Employee Benefits Security Administration (EBSA) serve a role in overseeing retirement plans and can assist in locating plans or plan administrators. For instance, if a former employer or plan administrator is no longer in business, the EBSA’s Abandoned Plan Database or their Retirement Savings Lost and Found Database can be valuable tools. The DOL also has an online search tool for lost retirement savings, which requires identity verification. You may also be able to search for a company’s Form 5500, an annual report filed for employee benefit plans, which can provide contact information for the plan administrator.
While 401(k) plans are defined contribution plans, the Pension Benefit Guaranty Corporation (PBGC) is a federal agency that insures private-sector defined benefit plans, commonly known as pensions. Although the PBGC does not cover 401(k)s, some individuals might mistakenly look there, so it is important to understand its specific role in protecting traditional pensions. Additionally, very old or small 401(k) accounts might eventually be turned over to state unclaimed property divisions if the owner cannot be located. You can search these state databases, often through a multi-state search portal like MissingMoney.com, to check for any unclaimed funds.
What to Do After Locating Your 401(k) Funds
Once a forgotten 401(k) account has been successfully located, the next step involves re-establishing contact with the plan administrator. This entity, whose details you would have found through your search, will provide the necessary forms and instructions to access or manage your funds. You will likely need to verify your identity to ensure the security of your account.
After contacting the administrator, you generally have several common options for your located funds. You might choose to leave the money where it is, especially if the plan offers favorable investment options or low fees. Another option is to roll over the funds into your current employer’s 401(k) plan, which can simplify your retirement savings by consolidating accounts. Alternatively, you can roll over the funds into an Individual Retirement Account (IRA), such as a Traditional or Roth IRA, which often provides a wider range of investment choices and greater control.
Cashing out the 401(k) is another possibility, but it is generally not advisable due to significant financial penalties. If you are under age 59½, withdrawals are typically subject to a 10% early withdrawal penalty, in addition to regular income taxes on the distribution. This can substantially reduce the amount you receive and potentially place you in a higher tax bracket for the year. For personalized guidance on the best option for your specific financial situation, consulting with a qualified financial advisor is recommended.