New research shows that we change jobs every four years. All that work means you can leave behind your old 401(k) accounts from your former employer. Want to track yours? Check if you have saved the old announcements you received in the mail. It will have your account number and contact information for the program administrator. Contact your former employer’s HR department. Check the National Register of Unclaimed Pension Benefits. It’s a free database that will search to see if there is any outstanding pension money in your name. Check your state’s Department of Labor database. Check out the FreeERISA website. This will tell you if your former employer rolled over your 401(k) funds into a default IRA account for you. You need to register for an account, but it’s free. What should you do after you find it? Option 1: Leave the money where it is. It’s certainly the easiest option. Option 2: You can transfer the money to your new retirement account at your current job. Experts say it’s a better option to focus on just one account. Just be sure to check the fees you may be charged for doing so. Option 3: You can roll the money over to an IRA. You have more control over the fees, and if you work often, there’s no limit to how many 401(k) plans you can roll over into one IRA. Option 4: You can withdraw the cash value of your account, but remember that you: Taxes must be paid for the withdrawal. You’ll also have a 10% penalty if you’re under 59.5. If you live in a high-tax state, you could lose half of your account balance due to taxes and penalties.
New research shows that we change jobs every four years. All that work means you can leave behind your old 401(k) accounts from your former employer. Want to track yours?
- Check if you have saved the old announcements you received in the mail. It will have your account number and contact information for the plan administrator.
- Contact your former employer’s HR department.
- Check the National Register of Unclaimed Pension Benefits. It’s a free database that will search to see if there is any unpaid pension money in your name.
- Check your state’s Department of Labor database.
- Check out the FreeERISA website. This will tell you if your former employer rolled over your 401(k) funds into a default IRA account for you. You need to sign up for an account, but it’s free.
What should you do when you find it?
- Option 1: Leave the money where it is. It’s certainly the easiest option.
- Version 2. You can transfer the money to your new retirement account at your current job. Experts say it’s a better option to focus on just one account. Just be sure to check any fees you may incur for doing so.
- Option 3: You can roll the money into an IRA. You have more control over the fees, and if you work often, there’s no limit to how many 401(k) plans you can roll over into one IRA.
- Version 4. You can withdraw the cash value from your account, but remember that you have to pay tax on the withdrawal. You’ll also have a 10% penalty if you’re under 59.5. If you live in a high-tax state, you could lose half of your account balance due to taxes and penalties.
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