How To Find Your Old 401(k)

Once you break up with a company — either by your choice or theirs — everything you contributed to your 401(k) is yours to keep. 

However, what typically happens is that 401(k)s get left behind in the hubbub of job changes. 

The good news is it doesn’t matter how long ago you left your position, your old 401(k) can still be tracked down. Plus, you want to ensure your retirement funds are earning their highest potential — which if they are stuck with an old employer is probably not happening. 

What Happens to Your 401(k) When You Leave an Employer?

If you don’t touch your 401(k) after leaving, there are a few things that can happen, depending on your previous employer’s rules and how much you had invested. 

• For balances under $7,000: Your old employer can move the money out without asking you first. If the balance is between $1,000 and $7,000, it has to be rolled into an IRA opened in your name — you become the owner of that IRA. If it's $1,000 or less, the plan can simply cash you out and mail you a check, minus taxes and any penalty.

• For balances over $7,000: “Your 401(k) remains with the same 401(k) provider,” says R.J. Weiss, CFP and founder of Ways to Wealth. “The responsibility to move the account falls on you. There's no strict time limit for accessing or rolling over your 401(k) funds.” 

Most abandoned 401(k)s over $7,000 stay right where they are, still invested in that plan's funds. That's not the same as growing the way it should — you're stuck with that plan's investment menu, you can't contribute anymore, and the fees can quietly eat into your returns.

That's not the same as it growing the way it should — you're stuck with that plan's investment menu, you can't contribute anymore, and the fees can quietly eat into your returns.”

There's one more way old money goes missing. If the plan itself shuts down and nobody can find you, your balance can end up in a state unclaimed property fund. That's a last resort — the plan is supposed to roll you into an IRA first — and it's the worst version for you, because money handed to the state counts as a taxable distribution with taxes withheld, while an IRA rollover doesn't. The same thing can happen to a distribution check that got mailed to an old address and never cashed. Either way, that's exactly what Missingmoney.com and your state's unclaimed property site are for.

How To Find Old 401(k)s

No matter how much time has passed, this is still your money, and you have the right to it. 

Of course, the longer your 401(k) has been abandoned, the harder it might be to track down. Here’s where to start your hunt:

Contact your previous employer

It’s best to go straight to the source. The company’s head of HR should be able to assist you, even if they were not in this position when you were an employee. 

Unfortunately, there are no hard and fast rules about how helpful HR needs to be, but try to at least get this information from them:

• Plan administrator contact information
• Plan ID and account numbers
• Contributions made 

If you at least have the name of the plan administrator, you can contact them directly for more assistance. They should be able to locate your plan based on your Social Security number. 

Find old plans with rollover apps

There are a few apps, such as Capitalize and Beagle, designed to make the job of tracking down your old 401(k) a breeze. 

These apps will assist you in rolling over your 401(k) to an IRA. This move will save you tax trouble and help your money to continue growing, but it is not the same as rolling your 401(k) over to a new company’s 401(k) plan. 

	Services	Fee	Additional retirement account services
Capitalize	Finds your old 401(k)s and handles the rollover	$0	A traditional, Roth, or SEP IRA — not a new employer's 401(k)
Beagle	Finds your old 401(k)s and handles the rollover, and reports the hidden fees you're paying	Starting at $3.99/mo	An IRA, or a Beagle Invest Individual 401(k) you can borrow from (interest is prime + 1–2%, paid back into your own account)

Search online databases

If your ex-employer is no help, a few free databases can help you track down your old plan. Some are run by the federal government and some aren't — check them all, because none of them has everything:

• National Registry of Unclaimed Retirement Benefits: A free private database run by PenChecks Trust. All you need is your Social Security number — but it only shows accounts from employers that registered their missing participants, so an empty result doesn't mean your money isn't out there.
• Department of Labor’s Abandoned Plan Database: You can search based on your company’s name and location and see if anything comes up. 
• DOL Retirement Savings Lost and Found: The Department of Labor built this one under the SECURE 2.0 Act. You'll verify your identity through Login.gov, and it covers private-sector employer and union plans — not IRAs, government or church plans, or Social Security. It's the newest database on this list, so it doesn't have everything yet, but it's free and it's worth five minutes.
• Pension Benefit Guaranty Corporation (PBGC): Enter your last name and last four digits of your Social Security number. The system is updated quarterly, so if you are recently separated from your position, you might need to wait a few months before any info is found. 
• Missingmoney.com: This is the free unclaimed-property search run by the National Association of Unclaimed Property Administrators (NAUPA), a network of the National Association of State Treasurers. Search by your name, then either claim through the site or get sent to your state's unclaimed property program.

What To Do With Your Old 401(k)

Once you’ve tracked down your old 401(k), you have a few options for what to do with it. 

Each choice has its own set of advantages and disadvantages. 

Keep your 401(k) with your former employer

You don’t necessarily have to move your 401(k) when changing jobs. 

You can leave it untouched, and if your contributions are over $7,000, it will continue to grow tax-deferred. 

However, you won’t have as much control over your investment options or be able to monitor it. You can also end up paying more fees. 

Roll over your 401(k) to your new employer  

The perk of rolling over your 401(k) to a new employer is that all of your retirement savings will be consolidated into one account. 

The main downside to this option is that not all employers accept rollovers. Your new employer’s retirement account can also have limited investment options when compared to an IRA. 

Roll over your 401(k) to an IRA

Rolling your old 401(k) into an IRA gives you the most control over your portfolio and fees. You could even branch into alternative investments if you want options beyond the usual funds.

But the IRA route will require more legwork on your end. You’ll need to compare IRA providers and fees. 

“Once you initiate a 401(k) rollover to an IRA, you have 60 days to complete the transfer,” says Weiss. “If the money is not deposited into the new IRA within this timeframe, it could be considered a withdrawal and subject to taxes and penalties.”

One way to skip that clock entirely: ask for a direct rollover, where the old plan sends the money straight to your new IRA. If the check comes to you instead, your old plan has to withhold 20% for taxes — so to roll over the full amount you'd have to make up that 20% out of your own pocket, and whatever you don't replace gets taxed, plus the 10% penalty if you're under 59½. On a $20,000 old 401(k), that means the check is $16,000, and you've got 60 days to find the missing $4,000 yourself or get taxed on it.

READ MORE: IRA vs. 401(k): Which One Is Better for You?

Cash it out

While this might be the most tempting option, it is also the worst choice financially. 

When you cash out a 401(k) plan you are automatically hit with tax consequences and a 10% penalty if you are under the age of 59½. On top of those downsides, you will lose the benefit of compounding earnings. 

If you have a 401(k) established when you are 25, it is going to grow faster and with less effort than a retirement account started at age 35 or 45. 

Don’t allow the financial desperation of today to derail your long-term retirement and saving goals!

@erikakullberg

Investing from 25 vs 35 – guess the difference 🤯😱 #erikataughtme #lawyer #investing

♬ original sound – Erika Kullberg

FAQs

TL;DR: Don’t Leave Your 401(k) Behind!

Your 401(k) is yours to keep, no matter when or why you left your job. The sooner you can find it, the better, so you can avoid fees and ensure it’s growing to your advantage.

Contact your old employer directly, search one of the online databases, or use an app like Capitalize or Beagle to find your old 401(k) and take control of it.

For more tips on making your money work for you, check out these episodes of the Erika Taught Me podcast:

• 10 Steps Towards Financial Wholeness
• Do THIS To Become A Millionaire
• How To Become Better With Money