When you change jobs, your mind is pulled in many directions at once, and it is easy to lose track of your 401(k). However, you cannot simply forget about it. It is difficult to build a nest egg that can last for decades, so retiring early isn’t an option. These steps can help how to find my 401k, and put that money to good use.
Get in touch with former employers
You can find your old 401(k) by contacting your former employer. If you want to access or roll over your retirement account, the company’s HR department should have records of it. Here’s what you need to know.
Contact information can be found there
Try looking through your old 401(k) statements if you don’t know how to contact your former employer – perhaps the company no longer exists or was acquired or merged with another company. You should be able to find contact information for the administrator of the plan on these documents.
If you do not have an old 401(k) statement at hand or if yours doesn’t tell you what you need to know, go to the U.S. Department of Labor website and search for your employer. The Form 5500 for your old retirement account should be located there. That will most likely have contact information for your 401(k)’s plan administrator.
Obtain information about unclaimed retirement benefits
Find yourself on the National Registry of Unclaimed Retirement Benefits if all else fails. Although not all employers participate in this program, many do since it provides benefits that assist them in meeting their legal obligations. A Social Security number is all that’s required, and it’s free.
Option 1: Leave it alone
The money does not have to be transferred from your old 401(k). Unless you lose track of your old account again, you won’t lose the funds. This is the least ideal option, however.
When your retirement savings are spread across multiple accounts, they are more difficult to manage. In addition, you are stuck paying whatever fees your old 401(k) charged, and these can be higher than what you would pay if you moved your money to an IRA.
Option 2: Transfer the money to your new 401(k)
Your employer may allow you to transfer the funds from your old 401(k) to your new 401(k) if you obtain a new job with a new 401(k). It’s important to check with your company’s HR department or plan administrator to see if your plan allows this.
When it is, you can choose direct or indirect rollovers depending on your decision. Because you do not handle the money at all, direct rollovers are the better option. The old plan administrator will take care of the transfer for you if you fill out a form telling them where the funds should be sent.
Option 3: Move the funds into an IRA
Instead of transferring the funds to your current 401(k), you can move them to an IRA if you can’t or don’t want to. The process is the same as rolling over to a new 401(k), and you can still choose a direct or indirect rollover.
In case you don’t have an IRA, you will need to open one with your broker. Your old 401(k) funds should be taxable the same as your IRA. The majority of 401(k) plans are tax-deferred, which means your contributions lower your taxable income in the year you make them, but your withdrawals at retirement are taxed. The government taxes these funds the same way, so you should use a traditional IRA.
