Most people switch jobs — or even careers — several times before retirement. At each job, you may have received a 401(k) retirement account as a benefit and contributed to it out of your paychecks. Those companies may even have matched your retirement contributions, adding even more money to those accounts.

As a result, you may have accumulated a hodgepodge of 401(k) plans under your name but lost track of those accounts, especially if you’ve moved several times since then or if you changed employers fairly often.

In fact, losing track of your 401(k) is incredibly common: 401(k) rollover platform Capitalize estimates some 24.3 million forgotten 401(k) accounts existed in 2021. That accounted for $1.35 trillion, or about 20% of all 401(k) assets. 

With 2.8 million new 401(k) accounts left behind each year, those funds add up. Capitalize’s research shows that forgotten 401(k) balances average just over $55,000. Individuals could lose out on around $700,000 in lifetime savings if these accounts are left unattended and misallocated.  

Fortunately, finding an unclaimed 401(k) can be fairly straightforward. In this post, we’ll review how to find and reclaim a lost or forgotten 401(k). 

How to find your unclaimed 401(k)

Typically, unclaimed 401(k) funds will be in one of three places: in your old account, in a new account, or with your state’s unclaimed property division. All you have to do is track it down with these simple steps:

  • Contact your 401(k) plan administrator
  • Contact your former employer
  • Use the Department of Labor’s website
  • Try other unclaimed asset registries

1. Contact your 401(k) plan administrator

Start by going to the source, if you can: your old plan administrator. Hopefully, you have their contact information squirreled away somewhere, such as on a paper or email statement. If you successfully make contact, you can skip ahead to claiming your new funds. 

2. Contact your former employer

What if you can’t find your old plan statements or if your old plan’s administrator has changed?

First, contact your old employer’s human resources or retirement benefits department. In theory, they should be able to look up your prior account under your name and Social Security number. 

From there, your next steps may depend on how much money you left in your account: 

  • If you had under $1,000: Federal regulations permit employers to cash out 401(k) funds with balances under $1,000. In such instances, your employer likely mailed a check to your last known address. Otherwise, the funds may have been turned over to your state’s unclaimed funds division. (Note: if your employer cashed out your retirement plan, you’re responsible for any tax consequences.) 
  • If you had under $5,000: 401(k) plans containing between $1,000 and $5,000 may be rolled into an individual retirement account (IRA) under your name. Don’t worry — your money and tax benefits are still safe! These IRAs are held by federally-authorized financial institutions until you come to claim them.  
  • If you had over $5,000: Funds worth over $5,000 are most likely right where you left them. Easy-peasy!

In any case, your employer should be able to confirm where your money is and how to access it. 

However, “should” doesn’t mean “will.” Employers may merge with new companies, go bankrupt, or switch plan administrators. Such changes may complicate tracking down your unclaimed 401(k).  If you run into a dead end, try the next two options.

3. Use the Department of Labor database

The Department of Labor (DOL) runs an abandoned plan database that tracks 401(k) plans in various stages of termination. The database can help you find your former employer’s Form 5500, which provides details about their employee benefit plans. That form contains contact information for the company and/or plan administrator.

Currently, the Department of Labor database is narrow in scope — but that’s about to change. Under the SECURE 2.0 Act, the DOL will build a new lost-and-found database by the end of 2024. Once operational, the database will provide users with contact information for all their past workplace retirement plan administrators.

4. Try other unclaimed asset registries

If you still can’t find your unclaimed 401(k), don’t fret — you have more options!

Start with the National Registry of Unclaimed Retirement Benefits. The registry uses your Social Security number to check for any unclaimed funds in old or rolled-over retirement accounts under your name. Keep in mind that if you can’t find your account through this registry, it may still exist because not all employers register with this program.

You can also try the National Association of Unclaimed Property Administrators. Unlike the other registries, this one isn’t retirement plan-specific. Rather, it provides resources to find any unclaimed assets held by any U.S. state. 

Another option is FreeERISA, which helps users track down 401(k) funds that have been rolled into an IRA. Note that you’ll have to register for free before continuing on your search. The site also offers advanced search tools for a fee. 

How to reclaim your newly found 401(k)

Once you’ve finally found your plan, it’s time to reclaim your 401(k). Fortunately, this process is usually pretty simple, though the specifics vary based on where you found your plan. 

If your fund:

  • Stayed with your old plan administrator: This one’s easy! Since nothing has changed (except that you know where your money is), just ask your plan’s administrator how to proceed and follow their instructions.
  • Rolled into an IRA: Contact the institution holding your IRA. Be prepared to provide identifying information and follow the institution’s procedures to claim your account or move it to a new plan. 
  • Was turned over to your state’s unclaimed property fund: Reach out via your state’s portal. Every state sets its own procedures for proving your identity and claiming your money. Just follow the instructions on the website!

What to do with your 401(k) next

Of course, the steps involved in claiming your 401(k) vary based on where the money is. Here are your options.

Roll over into your employer’s plan

Rolling your old account into your current employer’s plan consolidates your investments and simplifies goal tracking. You may want to take this route if your new 401(k) has lower fees or better investment options, or if you just want to make account management easier. 

Roll over into an IRA

Another option is to roll your 401(k) funds into an IRA. In some cases, IRAs are preferable to 401(k)s due to their wider investment selection and increased individual control. Plus, since your IRA follows you, not your employer, you’re less likely to lose track of it!

If you don’t already have an IRA, you can easily set one up with an online brokerage. 

Leave your money where it is

In some circumstances, you may prefer to leave your old 401(k) right where it is. This may be an option if your old 401(k) has lower fees or better investment options than your current plan. Bear in mind that while your old 401(k) can accrue capital gains, you can’t make new contributions after leaving that employer.  

Cashing out

You can also choose to cash out your 401(k) plan if your former employer hasn’t already done it for you. However, this route is typically not advised, as you may have to pay income taxes and/or a 10% early withdrawal penalty if you’re under age 59.5. 

If your money was moved for you

If your employer rolled your former 401(k) into an IRA, you may be able to keep your IRA where it is. However, since the funds were invested for you, not by you, you may prefer to move the money to a new IRA. Starting in January 2024, new regulations will also permit you to directly transfer your IRA into a 401(k) plan with a new employer. 

(Of course, you can also cash out your IRA. But, as noted above, that’s typically not an advisable course of action.) 

Discover unclaimed retirement savings

Employers may go out of business, merge, or change plan administrators, which can all complicate keeping track of an old retirement account. As a result, millions of forgotten 401(k)s hold a significant amount of assets.

Fortunately, lost 401(k)s are federally protected — employers must notify plan participants of their options and safeguard the funds. 

Once you find your account, be sure to add it in Quicken. When you track all your financial accounts and transactions in one place, it’s hard to forget about them — let alone lose them!