Recent data from the U.S. Bureau of Labor Statistics reveals that the median tenure for U.S. workers with their current employer is 4.1 years. Interestingly, younger employees tend to have shorter tenures compared to older generations, with workers aged 25 to 34 having a median tenure of 2.8 years, while those aged 55 to 64 have a median tenure of 9.8 years.
A 2023 Bankrate survey found that 56 percent of Americans are likely to seek new job opportunities in the coming year. This trend is driven by a growing emphasis on flexibility, remote work options, and higher pay in the job market.
Amidst this job-hopping culture, it can be easy to lose track of retirement accounts. As of May 2023, there were approximately 29.2 million forgotten 401(k) accounts holding assets worth $1.65 trillion, highlighting the importance of staying informed about your financial investments.
If you find yourself in a situation where you have lost track of a 401(k) account, here are some steps you can take to locate and manage it:
How to Discover a Missing 401(k)
Review Old 401(k) Plan Statements
Start by going through any old plan statements you may have received by mail or email. These statements can help you identify past employers where you were enrolled in a 401(k) plan and provide contact information to access your account.
Additionally, consider reaching out to former co-workers who may still be with the company for guidance on how to retrieve your lost account.
Contact Previous Employers
If you do not have access to old plan statements, contact your former employers directly, particularly the Human Resources department or benefits administrators. By providing personal details, they can assist in locating your previous 401(k) account.
Use Government Resources
Visit the Department of Labor’s website to search for company Form 5500, which can reveal information about the plan administrator during your employment. You can also utilize platforms like FreeERISA to track down lost accounts.
Check Unclaimed Asset Databases
If all else fails, search through databases like the National Registry of Unclaimed Retirement Benefits using your Social Security number to locate any unclaimed 401(k) funds that may belong to you.
Once you have successfully located your lost 401(k) accounts, consider the following options for managing them:
Consolidate into Current Employer’s Plan or IRA
Rolling over the old account into your current employer’s plan or an Individual Retirement Account (IRA) can help streamline your retirement savings and provide access to a wider range of investment options.
Remember, finding and managing lost 401(k) accounts is crucial for maximizing your retirement funds. Take proactive steps to organize your financial assets and ensure you are on track to meet your long-term financial goals.