One of the best benefits you can receive from a job is the option to invest in an employer-sponsored 401(k) account. These accounts often offer employer-matching, whereby your company pledges to match a percentage of your contributions to your 401(k).
No time to read this now? Pin it for later.
While this is a great way to accumulate funds for retirement, it’s common for people to lose track of their funds when they transition jobs. We’ve created a comprehensive guide below to find your forgotten 401(k) and create a retirement savings strategy for the future.
Where Is My Old 401(k)?
According to Capitalize, there are over 24 million unclaimed 401(k) accounts in the United States alone. While the money from these 401(k)s is still out there, the owners need to take the steps to reclaim their accounts.
Follow the steps below if you’re having difficulties locating your own lost 401(k):
- Get in touch with your previous employer: Before you do anything else, you should talk to human resources from your old job. They’ll usually have the information necessary to help you find your old 401(k) account.
- Reference unclaimed property databases: If you cannot reach your employer, unclaimed property databases might help you locate your old 401(k). You’ll want to check sites like the U.S. Department of Labor and FreeERISA.
- Find your plan administrator’s contact information: If you cannot reach your old employer, try to find your plan administrator. The simplest way to do so is to check your old 401(k) statements, which should contain the relevant contact information necessary to reach them.
Once you’ve found your funds, you want to ensure you don’t lose track of them a second time.
Transferring Your Funds
You have a couple of options to secure your 401(k) funds. You could either take the money out yourself, roll over your funds into an annuity or an Individual Retirement Account (IRA), or combine your previous 401(k) with your current 401(k).
Retirement Savings Strategies
Research suggests that over 20% of Americans have less than $5,000 saved towards retirement, with half of Americans planning to work during retirement. To properly prepare yourself financially for your golden years, creating a retirement savings plan today is important.
Some strategies you may want to use include:
- Calculating your goal retirement sum
- Establishing a monthly and yearly budget
- Starting a side hustle for extra income
- Automating your savings
- Prioritize paying off debt and building credit
Once you know how much you’ll need to live a comfortable retirement, you can begin saving little by little. Using the above strategies, you’ll start making progress toward a comfortable future one step at a time.
Conclusion
If you lose your 401(k) after transitioning jobs, it isn’t the end of the world. Using our above guide, you can locate your missing funds and create a savings strategy to help you accumulate funds moving forward. If you’re looking for more information about how to save for retirement, check out the infographic provided by Annuity below.
Please include attribution to Annuity.org with this graphic.
