It's easy to understand why some workers might lose track of an old 401(k): Those born between 1957 and 1964 held an average of 12.4 jobs before the age of 54, according to the Bureau of Labor Statistics. The more accounts you acquire, the more challenging it is to keep track of them all. Perhaps that's why there are some 24
million forgotten 401(k)s holding assets in excess of $1.3 trillion.1 If left unattended for too long, old accounts can be converted to cash—and even transferred to the state as unclaimed property—forgoing their future growth potential. If you're among those with misplaced savings, here's how to locate and retrieve them:
Think ahead
The next time you switch jobs, be sure to have a plan for your retirement funds so you don't lose track of them. After all, when you're saving for a decades-long retirement, every dollar counts.
How much will you need to retire?
Related topics
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
A rollover of retirement plan assets to an IRA is not your only option. Carefully consider all of your available options which may include but not be limited to keeping your assets in your former employer's plan; rolling over assets to a new employer's plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply). Prior to a decision, be sure to understand the benefits and limitations of your available options and consider factors such as differences in investment related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment, and other concerns specific to your individual circumstances.
Investing involves risk, including loss of principal.
1122-2LWUMany employers discover that finding missing participants can be next to impossible. However, plan sponsors are required to take all reasonable means to locate a participant. One of the tools that has been lacking is a national database where plan sponsors can post information on missing participants that is searchable by the general public. The Pension Benefit Guarantee Corporation maintains such a database for locatable defined benefit plan beneficiaries, buy nothing has existed for defined contribution plan beneficiaries, until now.
PenChecks, Inc., a large independent qualified plan benefit distribution processing organization, has established The National Registry as a wholly-owned subsidiary.
The National Registry is a website where plan sponsors, plan administrator, custodians, or other plan service providers can register the names of missing plan participants who have unclaimed retirement funds. Individuals who think they may have old 401k accounts simply enter their social security number and the database is searched for any nationwide matches. If there are any matches, the person shown who the employer(s) is that has retirement money and is also asked to provide your current contact information so that this employer may contact them and make arrangements for distribution.
According to the company, it is an excellent and cost effective way for plan sponsors to try to locate their missing participants. For a nominal fee per missing participant, the National Registry maintains a database that's accessible to anyone nationwide to help former employees find abandoned retirement money.
The firm will automatically notify the plan sponsor when a missing participant does locate money using the site. They will send the plan sponsor an email with the missing participant's new contact information so that the plan sponsor can make arrangements to pay them out.
You can find out more at www.unclaimedretirementbenefits.com.
Rick Meigs, President, 401khelpcenter.com, LLC
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