How to find an old 401(k) and reclaim lost retirement funds

Have you ever switched jobs and, years later, wondered how to find an old 401(k) account you've lost access to? You're not alone. Millions of Americans have forgotten retirement accounts, leaving money out of reach. Let's explore how to find those lost funds and get a complete picture of your retirement savings.

Losing track of a 401(k) account can happen to anyone, for many reasons. Maybe you quit a job or were laid off, and when you started a new job, you lost track of your previous retirement account details. Perhaps your company merged with another or switched retirement account providers. Or you may have moved, and your change in address prevented important mail from reaching you. Whatever the reason, leaving accounts with unclaimed retirement funds behind can have negative consequences. Finding an old 401(k) ensures you:

• Maintain control of your funds. If you don't know where your money is, you may never recover it, effectively losing hard-earned dollars. Inactive accounts also may incur fees that eat away at your funds or leave you vulnerable to fraud.
• Protect your investments. Controlling your funds can increase your growth options. Your account may now be more expensive or may offer fewer investment options. Sometimes financial plan providers go out of business, leaving your money unclaimed, uninvested and potentially losing out on compound interest.

Over time, your preferences for investing, such as your risk tolerance, may change. Retirement account consolidation helps you understand exactly how much money you have to invest, allowing you to maintain a comfortable level of financial security and change your preferences as needed.

Finding and accessing your old retirement accounts will depend on the information you have. Here are a few steps you can follow to track down old retirement accounts:

If your old employer is still in business, reaching out to their HR department is a great starting place. You also can work from past information about a company that has since merged or closed by searching the state corporate registry or the U.S. Department of Labor to find an active business that may have acquired your old company. You may need to provide personal information such as your name, SSN and dates of employment to get details about your 401(k).

If you're unable to contact your previous employer, your past W2s, tax form 5498 and other documents like credit reports are good places to find information about your 401(k). If you haven't previously kept a thorough record of your past employment, now is a great time to start. You can organize any documents you find as you search for records of old 401(k)s.

In some cases, you may know that your old employer-sponsored retirement plan is with a specific institution, but you don't have access. Reach out to the plan's administrator to verify your identity and get the information you need to access the account.

If you discover that the plan is no longer in place, there are a few ways they may have processed your funds:

• If the amount was less than $1,000, they may have sent a check to your last known address.
• For amounts between $1,000 and $7,000, they may have automatically rolled your funds into an IRA.
• Unclaimed retirement funds less than $1,000 may be located on an unclaimed property site or by searching on your state's unclaimed property division.

If you are unable to contact a 401(k) plan administrator or financial institution directly, you can use online 401(k) search tools and retirement account databases to track down old accounts using your name and SSN. The most common ones are:

• Retirement Savings Lost and Found Database
• DOL EBSA Abandoned Plan Database
• National Registry of Unclaimed Retirement Benefits

Be aware that some for-profit companies can be predatory, offering to help you find old 401(k) accounts for a fee. In many cases, you can recover the accounts yourself without paying anyone. Companies claiming to be able to find 401(k)s for you may be scams trying to steal your personal information, so be wary and try to verify their legitimacy beforehand.

Once you've located your old 401(k), consider your rollover options carefully. Rolling over your funds into an IRA or a new 401(k) can offer greater control and investment flexibility. Be sure to understand the tax implications and investment choices associated with each option. Consolidating multiple retirement accounts can simplify your financial management and streamline your retirement planning. Let's go over some of the available options:

When you roll over a 401(k) into an IRA, that account will remain even if you switch jobs again. IRAs also provide helpful continuity if you work for an employer that doesn't offer an employer-sponsored retirement plan or if you are self-employed. Another benefit is you can consolidate your funds in an account you've chosen based on management fees and investing options, rather than one chosen for you.

Consolidating past account balances with a direct rollover to your current employer's 401(k) works well if you like what they have to offer, and the balance is lower. While you might need to roll over again if you change jobs, putting your past funds into a current account can help streamline the process of retirement account management and managing your investments.

In rare cases, your old 401(k) account may have investment management features that you particularly like. In this case, you may choose to retain access to the 401(k). If you do, be sure to keep your log-in information and all your other important financial details in a safe and secure place so you don't lose access to the account again. You also should keep an eye on plan updates, such as changes to your investment management options.

Cashing out your old 401(k) will incur penalties for withdrawing before age 59½. This can include both income tax and an additional 10% penalty. Choosing not to invest the funds also means you'll miss out on compound interest. If your account contains less than $1,000, you may have this option exercised by the plan administrator if they are changing or closing the account. If you get a check from an old 401(k) account, you may need to pay higher income tax on it. If you act quickly, you may be able to use that check for an indirect rollover.

Now is a great time to establish a plan for future retirement account management. Here are some steps to take to avoid losing 401(k) accounts in the future and to maintain accurate financial records.

• Keep track of your 401(k) when you leave a job. Evaluate your 401(k) as soon as you leave a job—don't put it off until you get a new one. Write down important details like log-in information, account balances and the plan administrator/financial institution for your records, so it's easy to manage later.
• Review accounts regularly. Avoid losing track of old 401(k)s and ensure your investment selections align with your financial goals. Checking for accuracy is key. You also should update beneficiaries when needed. Over time, your risk tolerance may change, so regular check-ins help ensure your retirement accounts align with your broader investor strategy.
• Consolidate your accounts. Consolidating your retirement accounts can make them easier to manage. If you've opened multiple accounts with different providers over the years, consider rolling over your funds into an account with the provider that offers you the best options.

Losing track of a 401(k) can happen for many reasons but finding it and creating a system for future account management ensures you stay in control of your savings. Financial clarity relies on keeping track of your accounts, maintaining accurate documentation and having a trusted financial advisor who can help you plan for the future.

Connect with a Thrivent financial advisor to get help prioritizing your financial goals, evaluating your risk tolerance and weighing the pros and cons of different retirement accounts.