How to Track Down and Consolidate Lost 401(k) Plans

Millions of Americans are finding themselves in the same financial situation: They changed jobs over the years, times passed, and they completely lost track of their old 401(k) accounts. This isn’t an insignificant amount of money. According to a report by Capitalize, these lost 401(k)s total $1.35 trillion in retirement savings across an estimate 24 million forgotten accounts. They estimate that the average balance of a lost 401(k) account is about $55,400. However, this amount can vary significantly depending on factors like job tenure, salary, and contributions.

For many, the custodians or platforms in charge of your 401(k) have even changed over time due to mergers or transitions, adding to the confusion. Fortunately, there are steps you can take to locate these accounts and consolidate them for easier management.

Steps to Find Your Lost 401(k)

The Secure 2.0 Act now requires employers to share information about orphaned 401(k) plans with the Department of Labor (DOL). With this information, the DOL has launched the Lost and Found database – a great first place to start when it comes to tracking down your old 401(k). It’s worth noting that the database cannot help locate individual retirement accounts (IRAs) or retirement plans sponsored by government entities or religious organizations. It also does not provide information about Social Security benefits.

If you aren’t able to locate your 401(k) using the Lost and Found database, here are some other steps to take:
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1. Review Old Records: Search your files for account statements, emails, or correspondence from past employers. These documents may include the plan administrator’s name or account details.
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2. Contact Former Employers: Reach out to your previous employers’ HR departments. Even if your account has been transferred, they should have records of the custodian or plan administrator.
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3. Search Other National Databases: There are other online tools available to help you search for retirement benefits that you may have forgotten about. This includes:

• National Registry of Unclaimed Retirement Benefits: A resource to locate unclaimed 401(k) funds.
• MissingMoney.com: A database endorsed by state treasurers to help find unclaimed property.
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4. Check State Treasury Websites: If funds have been turned over to the state, your state’s unclaimed property website can help you locate them.
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What to Do Once You Find Your Accounts

Once you’ve located your old 401(k)s, consider consolidating them. You can roll them into an IRA or your current employer’s 401(k) plan. This approach offers:

• Simplified Management: Fewer accounts mean less hassle tracking balances and statements.
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• Aligned Investments: Consolidation ensures your savings work together under one strategy.

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Getting All Your Accounts Working Towards Retirement

Tracking down lost 401(k) accounts may take some effort, but it’s worth it to ensure all your savings are accounted for and working toward your retirement goals. By consolidating these accounts, you can streamline your finances and focus on building a cohesive investment strategy.

With new tools like the Lost and Found database, finding and managing your retirement accounts will only get easier. Take the time now to organize your accounts for a clearer financial future.

If you’re looking for guidance on managing all aspects of your retirement savings, including how to best utilize your 401(k), learn more about Grand Wealth Management’s approach to retirement planning.

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_{Disclosure:
The opinions expressed herein are those of Grand Wealth Management (“GWM”) and are subject to change without notice. This material is not financial advice or an offer to sell any product. This article is for informational purposes only and does not constitute investment, legal or tax advice and should not be used as a substitute for the advice of a professional legal or tax advisor. GWM reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. This is not a recommendation to buy or sell a particular security. GWM is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about GWM including our investment strategies, fees and objectives can be found in our ADV Part 2, which is available upon request.}

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