Found Money: 3 Ways To Track Down ‘Lost’ 401(k) Accounts

I couldn’t believe this number when I saw it published recently: There’s something like $1.6 trillion sitting in “lost” 401(k)-style accounts. If this money is yours — and you’ve moved onto a new employer — you can still claim it. By “lost,” I mean accounts that are inactive and are sitting unused when an employee has changed jobs.

Maybe “abandoned” is a better word. The bottom line is still the same. If the account is yours, the money still belongs to you and you can claim it. You just need to know how to search for it.

“The problem is most acute for people who leave behind small accounts,” writes Mark Miller in Retirement Revised. “Employers are permitted to transfer orphan accounts that hold less than $7,000 into IRAs that may earn low returns in money market funds and charge high fees—and most do so to trim plan administration costs. Over time, these accounts can simply waste away.”

“Increased job switching has accelerated the issue,” Miller notes. “The current tight labor market makes it easy for people to shift jobs more frequently as employers compete for talent.”

How do you track down abandoned retirement accounts? There are a number of ways, but it will require some patience and sleuthing on your part. According to bankrate.com , here are three key strategies:

1. Contact Your Old Employer. They all keep records. Unless you moved your money out of their plan, it’s likely still there. “If you don’t have your old plan statements, the next best option is to reach out to your former employers directly, either through the Human Resources department or whoever handled benefits like retirement accounts,” bankrate advises. “By providing your personal information, such as your name and Social Security number, they should be able to look up whether you participated in the 401(k) plan during your employment.”
2. Check With the U.S. Dept. of Labor. Every company that offers a plan needs to file paperwork with the government. Another option is to find plan information through the Department of Labor’s website . “By locating the company’s Form 5500, an annual report required to be filed for employee benefit plans, you should be able to find contact information and who the plan’s administrator was during your employment. You may also be able to find information on lost accounts through FreeERISA .”
3. Check State Records. Nearly every state has an agency that tracks “unclaimed” assets. “You can also try searching one of the publicly available databases for unclaimed assets. The National Registry of Unclaimed Retirement Benefits is a good place to start. By entering your Social Security number, you can quickly see if there are any unclaimed 401(k) funds that belong to you. Also search using the National Association of Unclaimed Property Administrators site ,”

There’s no better feeling than tracking down money that has your name on it in an abandoned account. It’s found money that you can add to your retirement kitty.

By John F. Wasik, Contributor