How Do I Find My Old 401(k) Accounts?
It’s not uncommon for people to forget about a 401(k) account, especially if they haven’t worked for the company very long. It could be money you contributed, or it could be a profit sharing contribution that was given by your prior employer and you just weren't aware of it happening.
How do I go about finding the account(s)?
Some people think they have to contact their old boss to get the info and that can feel awkward. But, it’s not necessary in most situations. If you know where the account is, you can contact the provider directly, verify some information and make a decision on what you want to do with it.
Sometimes, an employer will move the plan from one provider to another. In this case, it may be a bit tricky to track down. First, it’s always fair game to call your previous employer and ask to speak with someone in HR. They will know where the plan is and provide you information on it. They're actually required to as long as you still have an account in the plan. If you’re still not up for that, perhaps your advisor can help search the Form 5500 records through the Department of Labor to track down the new provider. Depending on how many participants are in the plan, it may be listed or may not be.
If your balance is less than $5,000 in the plan then it could pose another problem in trying to locate the money. There is an IRS rule that allows plan sponsors to push out accounts that are less than $1,000 by check to the participant and between $1,000 and $5,000 to a rollover IRA (they have to send you a notice of this happening - FYI). Again, depending on the provider, that may be in the same place or a third party. For example, if your plan is at Fidelity, it is very likely the rollover IRA stayed within Fidelity enterprise. However, other companies may leverage a third party to accept those rollovers.
Additionally, your prior company may have been acquired and merged. In this scenario, you may have to go to the acquiring company to find out if your balance is within their plan, if they chose to merge the 401k assets into theirs.
Finally, if the company who sponsored the plan shuts down its business (or the acquiring company shuts them down), they also have to shut down the plan. If they cannot contact the you to get your money out, they will contract with a third party to move the assets out of the plan so they can actually wind down the plan. Millennium Trust is one of the biggest players in this space and may house your account. They aren’t the only game in town, but a good place to start.
How can an advisor help you?
Knowing how to navigate the above barriers is definitely helpful. Additionally, knowing tax consequences for having a check cut directly to the person or as a rollover are big considerations that shouldn’t be taken lightly. They can also help if it should be rolled to an IRA, into your current 401k, or actually left where it is. Finally, just because you can roll it over doesn’t mean you should! There are planning circumstances (fee considerations and backdoor Roth IRA’s for example) that should be discussed before acting too quickly.
If you need help tracking down an old 401(k), I’m happy to help! Simply click the Schedule Appointment button at the top of the page to find time to discuss.
