Got a 401(k) with your current employer? Amaze-balls! 🤩 Just don’t leave it behind when you hand in your pink slip.
Forgotten retirement accounts are just floating around in the financial void as we speak. 🫧 If you’ve got a lost 401(k) somewhere out there, you'll want to grab it with both hands. 💸 Here’s why and how!
Here’s Five Fast Facts on forgotten 401(k)s:
- 💰 Tax Attacks - Why care about that old 401(k)? Well, once you leave your job, your employer might decide to cash it out and send you a check (if it’s under $1,000). While that sounds kind, cashing out a 401(k) prematurely results in taxes owed if you don’t put it into a new account within 60 days. Your employer could also move your account into an IRA, which could result in some unexpected tax stuff, too.
- ‼️ Fees? Oh, Please - Another bummer: some retirement plans tack on extra fees to manage what they call “non-employee accounts”. Nonemployment maintenance fees typically get charged monthly and can really add up over time. All the more reason to regain control.
- 🥴 By The Wayside - Outside of taxes and fees, forgetting about a retirement account means you’re not nurturing it or making important investment changes as you age (i.e. moving out of stocks and into bonds). This could result in the lost account getting super imbalanced…and you losing hard earned money.
- 🕵️ Detective Mode - How do you track down an old retirement account? A good first step would be to contact your old job (get an HR or accounting contact). You can also go through your old financial documents to see if you have an old statement, pay stub, or W-2 with helpful clues. Once you figure out where it’s being held, you can contact the plan administrator.
- 💻 Lost N’ Found - Still stumped? Check out the Department of Labor’s Retirement Savings Lost and Found Database. If your old job was in the private sector or you were a member of a union, you should be able to find your retirement account details.
🔥Bottom line: Don’t let your old retirement money collect any more dust. Track it down, move it someplace safe, and keep feeding that piggy bank. Tariff this, trade war that…how do Americans really feel about tariffs? In this article, we break everything down for ya.
Trying to track down a long lost 401(k)?
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