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Find That Lost Retirement Account
Have you misplaced a retirement account from a former employer? Perhaps it’s been so long, you can’t even recall. Surprisingly, more than 24 million “forgotten” 401(k) accounts exist, holding approximately $1.35 trillion in assets. Even the most organized professionals might discover they have unclaimed “found” money.
Understanding “Forgotten” Retirement Accounts
Given that baby boomers have held an average of 12 jobs, retirement accounts easily become forgotten. Now, think about your first job. Do you recall what became of your work-sponsored retirement plan? If not, it’s time to start searching for those potentially forgotten funds.
Initiating Your Search
To begin with, contacting former employers is a great method to locate lost retirement accounts. If you’re unsure whom to call try the human resources or accounting department. They can verify your participation in their plan records. However, be ready to provide your full name, Social Security number, and employment dates.
In the event that a former employer no longer exists, then search for an old account statement. These typically contain contact details for the plan administrator. Lacking an old statement? Consider contacting former coworkers who might have useful information.
Futhermore, even if these initial steps yield little, they aid in gathering crucial information.
Online Resources to Explore
Next, turn your search to the internet. Ensure you equip yourself with as much information as possible and explore these resources:
National Registry of Unclaimed Retirement Benefits
This database, incorporating employer and Department of Labor data, helps identify any unpaid or lost retirement account money. Importantly, you’ll need your Social Security number to access this tool.
FreeERISA
Moreover, if your forgotten account, if valued between $1,000 and $5,000, may have been transferred to a default traditional IRA. This happens when employers establish these when they can’t locate a former employee or receive no response. You can search for retirement and IRA accounts on this database, though registration is required.
Keep in mind that at age 73, you generally must start taking minimum distributions from a traditional IRA. Withdrawals are taxed as ordinary income and may incur a 10% federal tax penalty if taken before age 59½.
The U.S. Department of Labor
Finally, the department monitors plans that are abandoned or being terminated. Try searching its database to find the qualified termination administrator (QTA) overseeing the plan’s closure.
What to Do Next?
After locating your retirement account, your next steps depend on the plan type and location. Since rules vary by state, consult your tax and financial professionals. We are knowledgeable about current regulations and can assist in strategizing your newfound funds for travel, investment, or even that dream vacation home. Ultimately, you’ve earned that money, so it’s time to enjoy it!
