Tracking Down a Forgotten 401(k)

Switching jobs is part of modern work life, but your retirement savings shouldn’t get lost along the way.

It’s surprisingly common for workers to lose track of old 401(k) accounts. According to the Bureau of Labor Statistics, those born between 1957 and 1964 held an average of 12.4 jobs before age 54.1 With each new job, a new retirement account may have been opened, making it harder to keep tabs on where your money lives.

Financial professionals regularly come across clients who forget about retirement accounts from previous jobs, sometimes holding more funds than expected. A recent report estimates that in the U.S., there are 29.2 million left-behind or forgotten 401(k) accounts holding approximately $1.65 trillion in assets.2

The good news? There are ways to find forgotten 401(k) accounts

Thanks to the SECURE Act of 2022, finding those forgotten funds has gotten easier. One of the law’s provisions led to the creation of a national retirement plan “lost and found” database, launched in late 2024 by the U.S. Department of Labor. The online tool helps you locate contact information for the administrators of past workplace funds.

Another win is that employers can now automatically transfer small account balances to a new plan when employees switch jobs, helping their savings follow them instead of falling through the cracks.

Why do accounts turn dormant?

Even with improvements, some accounts are still forgotten. Companies close, change names, or merge. Plans may switch providers. Or maybe you moved, changed your email, and never updated your contact information. These scenarios make it hard to track where your money is.

But it’s worth the effort. It’s estimated that the average forgotten 401(k) balance is over $56,000.2  Failing to manage those funds could lead to significant losses in retirement income as time goes on.

5 steps to reclaim your old 401(k)

1. Find your funds. To find a 401(k) from an old job or previous employer, contact your former employer and ask if they’re still managing a retirement account in your name. If the company no longer exists, reach out to the plan administrator. Don’t know who that is? Head to the Department of Labor’s EFAST database and look up the company’s Form 5500, which includes contact information for plan administrators. You can also check your state’s unclaimed property database through the National Association of Unclaimed Property Administrators. Some accounts that have gone untouched for years end up there.
2. Take control of the account. Once you’ve found your forgotten funds, you’ll likely want to roll them over into either your current employer’s 401(k) (if allowed) or a traditional or Roth IRA. The decision as to which account you rollover your inactive 401(k) will depend on various factors such as fees and range of investment options available. Be sure to instruct your former and current 401(k) plan administrators (or IRA custodian) to handle the rollover directly so that a taxable event is not triggered. If the money passes through your hands, you’ll have just 60 days to deposit it into a qualified plan — or else it could be treated as a distribution, taxed as income, and possibly hit with a 10% early withdrawal penalty if you’re under 59 ½.
3. Align investments with current goals. Chances are, your old 401(k) was invested with a different version of “future you” in mind. Once the funds are rolled over into a new account, review your investment allocations for proper diversification and to determine if they still align with your long-term financial plan and risk tolerance.
4. Think ahead. Next time you change jobs, have a plan for your retirement funds before you leave. Keeping your accounts consolidated — either by rolling over in your new employer’s plan or an IRA — can help you stay organized and ensure that your investments remain aligned with your retirement timeline and goals.
5. Keep a retirement account inventory. Going forward, create a simple spreadsheet or list of all your retirement accounts, including the employer plan provider, and contact information. Keeping tabs now can save you a lot of searching later.

For more information, contact your financial professional. Not a MA Brokerage Solutions client? Let’s talk.