They say they can find all your old, forgotten 401(k) accounts using your social security number. But I’m doubtful because I couldn’t find any info about them online except on their website. And I don’t like giving out my social security number online.
I think I have some accounts from past jobs, but I don’t know how to find them. I used to contribute to 401(k)s when I was younger but didn’t always transfer them when I switched jobs. Is there a central database where I can find them, or am I out of luck?
I recently decided to utilize some services to track down any old accounts associated with me. While a couple of them had zero balances, rendering them unhelpful, I was pleasantly surprised to discover one account with over $2,000 parked at a safe harbor IRA company called RCH. It turns out that my former employer, whom I left in 2014, had rolled over this account without my knowledge, and I had since changed addresses.
Here’s the gist:
If your 401k balance exceeds $5,000, your employer typically must leave it where it is, but it’s essential to review the fees you’re being charged, as they tend to be higher.
If your account holds less than $1,000, your employer may opt to issue a distribution check to you.
The challenge lies with accounts ranging from $1,000 to $5,000 - many individuals have them. Researching safe harbor IRA options can provide clarity. Employers and 401k plans have the ability to automatically transfer these accounts to a safe harbor IRA. However, the problem arises when your assets remain stagnant, and the institutions levy annual or monthly fees, eating away at your retirement savings.
Your state’s abandoned property department will take over any of those accounts. You can do this yourself for free by googling "X State Abandoned Property.