Whether retirement is years away or right around the corner, workers may not have a handle on all their 401(k) accounts left behind at past jobs.
Read on for how to start tracking down old accounts.
MILLIONS OF ACCOUNTS “FORGOTTEN” OR LEFT BEHIND
Financial company, Capitalize, estimates there are around 29 million 401(k) accounts lost or left behind when workers changed jobs. It adds up to about $1.65 trillion in assets.
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The money doesn’t disappear, but it may not work for you as well as it could.
“If you have a number of accounts, you're paying fees for every single one,” said AARP Senior Policy Advisor David John. “That means you've got money going out to somebody else rather than benefiting you.”
As retirement approaches, getting organized is key.
“When you get close to retirement, it's an awful lot easier to figure out how you're going to use your money if you only have a few accounts or maybe one account,” John said.
TRACKING DOWN 401(k) ACCOUNTS
Congress passed legislation to create a federal database for retirement savings, but that’s still a couple of years away.
If you haven’t saved the paperwork from old retirement accounts, you can start by making a list of every past workplace where you’ve contributed to a retirement plan. Contact past employers to find the financial firm that has the account.
If the company is closed or you can’t get in touch, try searching the Department of Labor’s EFAST tool. You can use the drop-down menu to search by “plan sponsor” and type in your former company’s name. This lets you search for Form 5500. Download it and look through it for service provider information. The forms in the database go back to 2010.
David John said you can also try unclaimed property searches on the off-chance the money was returned back to the state. Check every state where you’ve worked. Here's a link to Texas' official unclaimed property search.
Other web searches include the Department of Labor’s Abandoned Plan search.
Consumers can also try the National Registry of Unclaimed Retirement Benefits run by PenChecks Trust, a private company that processes retirement benefits distributions.
Capitalize says it has a database of 401(k) accounts whose owners may have forgotten about them.
SPEAKING OF RETIREMENT…
A North Texas city made a list of top places where retirees’ money stretches farther.
The financial tech company, SmartAsset, said it looked at 100 places in the U.S. with the highest proportion of adults 65 and older. It considered income, cost of living and tax rates to rank how far incomes stretched.
North Richland Hills ranked number 12. Georgetown, Texas is number 8 and Sugarland, Texas made number 5 on the list.
“Cost of living increases or tax rate changes can have a substantial impact, so it's not just about the money you have, it's about how far that money stretches,” said Ray Marek, SmartAsset spokesperson.
We met Faye Swindle while gardening near her home in North Richland Hills. She said the Tarrant County city has been home for more than two decades.
“We have the best library around, I love our library, we have good parks,” Swindle said. “Everything we need is out here.”
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