When youleave a job, you might forget to move your retirement plan.
A new federal initiative could help you locate forgotten retirement money.
Congress gave the department a deadline of Dec. 24, 2024, to establish this database.
We’ll keep you updated with next steps once the database does launch.
How will this database help?
“By providing an easy way to check, it would help find a lot of abandoned accounts.”
Read more:I Can Retire Early After Paying Off $300,000 in Debt.
You may have to be patient and persistent.
If your former company no longer exists, this process is a bit trickier.
Start by searching your records for old 401(k) statements.
There are a few ways to search for abandoned 401(k) accounts online.
All you’re gonna wanna provide is your Social Security number.
You have to register to use the site, but it’s free.
These two databases aren’t the most extensive, and they’re not always user-friendly, Gammon said.
There are also paid services that can help with this task, such asMeetBeagleandCapitalize.
Just watch out for sneaky fees.
What should you do with the money in an old 401(k)?
You also may be charged monthly or annual maintenance fees to maintain your account.
Check statements regularly for any updates to the plan.
Pro tip:
Think twice before rolling your 401(k) into a Roth IRA.
If you have less than $1,000 in your retirement account, it might automatically be cashed out.
Plus, you’ll have less savings when you reach retirement age.
If you have less than $1,000 in your retirement account, it might automatically be cashed out.
