Is Your Retirement Plan Missing $1.65 Trillion? Time to Reclaim What’s Yours

Retirement savings are a cornerstone of financial security, yet millions of Americans are unknowingly leaving money behind.

Read: The State By State Guide to Unclaimed Assets

A staggering $1.65 trillion—representing 29.2 million forgotten 401(k) accounts—is sitting unclaimed as of 2023, according to research from Capitalize.

That’s about 25% of all U.S. 401(k) assets! If some of this money belongs to you, don’t worry.

Here’s how to find and recover your forgotten funds.

A New Tool to Help: Retirement Savings Lost and Found

The good news? The government is stepping in to help Americans reconnect with their lost retirement funds.

Thanks to the SECURE 2.0 Act, a Retirement Savings Lost and Found database is set to launch by December 29, 2024.

This comprehensive tool will allow individuals to search for lost 401(k) accounts by simply inputting their information. It collects data from plan administrators, ensuring no account is left behind.

While some data collection challenges remain, the Employee Benefits Security Administration (EBSA) is working diligently to create an accurate and user-friendly system.

Once the database goes live, reclaiming your funds will be as easy as conducting an online search.

Steps You Can Take Now

While the Retirement Savings Lost and Found database is under construction, you don’t have to wait to start tracking down your money. Here’s how you can begin:

1. Contact Your Former Employers
   If you believe you had a 401(k) at a previous job, reach out to your former employer or the plan administrator. They may still have records of your account.

2. Check Social Security Notices
   The IRS notifies Social Security about vested benefits, and you may receive a letter with details about old accounts. Don’t ignore this correspondence—it could lead you to lost funds.

3. Get Help from the EBSA
   The EBSA assists employees in reclaiming unclaimed 401(k) funds. Their representatives can guide you through the process and help locate accounts.

4. Search the Abandoned Plan Database
   The Department of Labor maintains a database for terminated plans from companies that are no longer in operation. It’s a valuable resource for finding funds tied to now-defunct employers.

Avoid Losing Track of Your Retirement Funds

Recovering lost 401(k) accounts can be a hassle, but you can take steps to prevent this from happening in the first place:

• Consolidate Your Savings: When leaving a job, roll over your 401(k) into an Individual Retirement Account (IRA) or transfer it to your new employer’s plan. This keeps your savings in one accessible place.

• Use an Online Brokerage Account: These platforms allow you to centralize and manage your retirement investments while offering a wider array of options than traditional 401(k) plans.

By actively managing your accounts, you’ll minimize the risk of losing track of them and ensure your retirement savings are always working for you.

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