Thanks to main media and even the IRS, many people are familiar how on Americans miss over $1 billion dollars each year in unclaimed tax returns (missing tax credits, lost or undelivered checks, not filed return when there is a refund, etc.). Remember that if a tax refund is not claimed within the three-year period, the money is transferred to the U.S. Treasury.
However, many people are not aware on the over two trillion sitting on unclaimed 401k accounts. We provide a few recommendations below to claim your 401k funds:
If you’ve ever changed jobs and lost track of an old 401(k), our recommendation is to contact your previous employer and/or the plan administration of its 401k to get access. Hopefully, you know what companies you have worked for during your professional lifetime and those that provided retirement benefits. Keep in mind that it is not only what you contributed, but in many cases companies provide a matching and/or profit sharing.
Additionally, the Department of Labor’s new Retirement Savings Lost & Found is your second stop. Visit lostandfound.dol.gov , sign in with Login.gov, and search using your personal information. It will show plans tied to your Social Security number and list each plan administrator’s contact details so you can request a balance or rollover.
If your plan isn’t listed, you can still track it down: search the DOL’s Form 5500 database for employer filings, the PBGC “Find Unclaimed Benefits” site for terminated plans, and MissingMoney.com for accounts transferred to state unclaimed property. Once you confirm your funds, ask for a direct rollover to your current 401(k) or IRA to avoid 20 % withholding and taxes.
We recommend checking these databases if you are unsure or as part of your retirement planning —especially after a job change—to make sure no retirement dollars are left behind.
Link USA Today – $2.1 trillion sits in left-behind 401(k) accounts. Could one be yours?
Link 401k Specialist – Forgotten 401(k) Assets Hit $2.1 Trillion
Link Investopedia – $2 Trillion in Forgotten 401(k)s Proves It’s Possible To Forget Your Money
