25% of all retirement savings sit in forgotten 401(k)s. Is any of it yours?

Every time you move between jobs, your 401(k) retirement balance doesn’t automatically move with you. You can roll it over to a new account, cash it out, or just leave it behind. Millions of Americans default to that last option, either by accident or by putting off the decision for later.

Forgotten 401(k) retirement accounts now hold a staggering $2.1 trillion across 31.9 million accounts, according to recent research by Capitalize and the Center for Retirement Research at Boston College. That’s almost 25% of all 401(k) assets in the U.S., with an average balance of $66,691 per account.

If you’ve changed jobs even once in the past decade, there’s a chance you have money sitting in an old retirement account somewhere. Here’s what you need to know about forgotten 401(k)s and how to track yours down.

Why 401(k) accounts get left behind

When you leave a job, dealing with your 401(k) rarely feels urgent. You might focus on finding a new job, starting a new position or even moving to a new place.

Some of the most common reasons these accounts end up forgotten include:

• The rollover process is surprisingly complicated. Research from Capitalize found that only 22% of people managed to roll over a 401(k) without help. Most people who tried said the process took at least two months to complete. Between tracking down account numbers, filling out forms and coordinating between multiple financial institutions, many workers simply give up.

• Job switching is more common than ever. The number of years workers stay with their current employer dropped to 3.9 years in 2024, the lowest level recorded since 2002, according to the Bureau of Labor Statistics. This creates more opportunities for accounts to get lost.

• You might not even know you have one. Some employers automatically enroll workers in retirement plans. If you didn’t pay close attention to your benefits or paycheck deductions, you might have a 401(k) without knowing it.

Learn more: 7 best low-risk investments for retirees

What happens to forgotten 401(k)s

Abandoned retirement accounts don’t remain untouched forever, accumulating returns. Several things can happen when you lose track of your retirement savings, and they typically aren’t so great.

• Fees can eat away at your balance. Many 401(k) plans charge annual fees that can range from under 0.5% to over 1.5% of your account balance. When you’re not actively managing an account, you might not notice these fees draining your retirement savings year after year.

• Your money may be stuck in poor investments. Not all forgotten accounts are in diversified index funds that copy the market’s performance or target-date funds that automatically adjust over time. Some might be sitting in cash-equivalent accounts earning minimal returns and missing out on the stock market’s growth.

• Small balances can disappear. If your account balance is under $5,000, your former employer can execute a “forced rollover” into a Safe Harbor IRA. These accounts typically invest in conservative, low-yield options. Balances under $1,000 can be cashed out entirely, with you getting a check minus taxes and penalties.

• Your state can take control of unclaimed accounts. If your former employer can’t locate you, your 401(k) gets liquidated and transferred to the state as cash. This stops all investment growth, though you can claim it back later.

A forgotten 401(k) with $66,600 sitting in a money market fund charging 0.85% in fees might grow to just $110,612 over 30 years. That same amount in a well-allocated, low-fee account returning 8% annually could grow to $645,141. That’s more than $500,000 in potential retirement income lost.

Learn more: Can you really retire with $500,000 in savings and investments? (Yes, it’s possible)

How to find forgotten 401(k) accounts

To make sure you don’t have hundreds or thousands of dollars in a 401(k) account you forgot about, start with these steps, arranged from easiest to more involved:

• Check the national registries first. The National Registry of Unclaimed Retirement Benefits lets you search using just your Social Security number. The Department of Labor also launched the Retirement Savings Lost and Found Database to help people locate unclaimed benefits. Both sites are free and take just minutes to search.

• Search for unclaimed property. Visit MissingMoney.com, which searches unclaimed property databases across all 50 states. While this site covers more than just retirement accounts, it might surface old 401(k)s that have been turned over to state unclaimed property offices.

• Dig through old employment records. Look for previous 401(k) statements, whether paper or digital. Check old emails for annual statements or notifications from plan administrators. Your W-2 forms from past jobs may also show retirement plan contributions, confirming that you had an account.

• Contact former employers. Reach out to the human resources department at companies where you previously worked. Someone there should know which company administered the retirement plan, even if they can’t immediately locate your account details.

• Call plan administrators. There aren’t that many major 401(k) providers in the market. Fidelity, Vanguard, Charles Schwab, Empower, and Principal handle a huge portion of workplace retirement plans. Contact the customer service departments at these firms with your Social Security number and previous employer information.

• Use the Department of Labor databases. The DOL maintains an abandoned plan database for terminated plans. You can also search Form 5500 filings, which all 401(k) plans are required to file annually. These databases search by plan name or employer name, provide you with the plan administrator’s contact details. You can use this information as a starting point to locate previous 401(k)s.

• Search the Pension Benefit Guaranty Corporation database. The PBGC holds unclaimed benefits from terminated pension plans, including some 401(k)s. If you find your plan listed, call 1-800-400-7242 to claim your benefits.

If all else fails, you can use companies like Capitalize and Beagle that will search for lost retirement accounts on your behalf and handle the rollover process for you. Capitalize’s service is free, but the catch is that they earn referral fees when you open an IRA with one of their partner providers.

Beagle charges upfront fees of $19 to $99, depending on the number of accounts they find, plus a monthly fee of $3.99 for ongoing investment management. These services make sense if you’ve had multiple jobs and don’t want to spend hours tracking down old accounts on your own.

What to do once you find an old 401(k)

Once you’ve located your old retirement money, you have several options for what to do with it.

• Roll it into your current employer’s 401(k). If your new employer offers a solid plan with good investment options and reasonable fees, consolidating your old account into your current one is typically the best option since it puts everything in one place and simplifies your finances.

• Roll it into an IRA. Opening a Roth IRA or traditional IRA gives you more control over your investment choices and often lower fees than employer plans. This option is a good fit if you’re between jobs or your current employer doesn’t offer a 401(k).

• Leave it where it is. If your former employer’s plan offers excellent investment options and low fees, and your balance exceeds the forced-rollover threshold, you may choose to keep the account as is. Just make sure you’re actively managing it and understand the fees.

• Cash it out. This should be your last resort. Cashing out a 401(k) before age 59 1/2 triggers income taxes plus a 10% early withdrawal penalty. You’ll also lose years of potential compound growth on that money.

If you’re unsure which route to take, a financial advisor can walk you through the fees, taxes and investment choices to figure out what works best for your situation.

Learn more: How to find a trusted retirement advisor

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