Your mind is pulled in many directions at once when you change jobs, and you can easily lose track of your 401(k). Nevertheless, you should never ignore it. Retiring early isn’t an option since it is difficult to accumulate a nest egg that will last for decades. Check out how to find my 401k and how to use that money.
Contact Your Former Employers
Contact your former employer to find out where your 401(k) is located. In most cases, your company’s Human Resources department will be able to access or transfer your retirement account. Click here to learn more.
You Can Find Contact Information There
In case you don’t know how to contact your former employer, you may be able to find it through your old 401(k) statements. The company may not exist anymore or may have been acquired or merged with another company. These documents should include contact information for the plan’s administrator.
In the event that you don’t have an old 401(k) statement, or yours doesn’t provide you with the information you need, go to the Occupational Safety and Health Administration website. You can find your old retirement account’s Form 5500 there. Your 401(k) plan administrator’s contact information can be found in that document.
Find Out What Retirement Benefits Are Unclaimed
If all else fails, you can check the National Registry of Unclaimed Retirement Benefits. Despite the fact that not all employers participate in this program, many do, as it provides them with benefits that assist them in meeting their legal obligations. all you need is your social security number, and it is free.
The First Option Is To Leave It Alone
Your old 401(k) does not need to be rolled over. Funds won’t be lost unless you forget about your old account again. Unfortunately, this is not the most effective option.
You may find it more difficult to manage your retirement savings when they are spread across several accounts. Additionally, you will have to pay the fees that your old 401(k) requires, which can be significantly higher than what you would pay if you transferred your money to an IRA.
Your Second Option Is To Transfer The Money Into Your New 401(k)
If you get a new job with a new 401(k), your employer may allow you to transfer the funds from your old 401(k) to your new 401(k). It’s important to check with your company’s HR department or plan administrator to find out whether this is allowed.
Depending on your decision, direct rollovers or indirect rollovers will be available. Direct rollovers offer a better option because you do not have to handle the money. Fill out a form with the old plan administrator and tell them where the funds should be transferred. They will handle the transfer for you.
Option 3: Transfer The Funds to an IRA
You can move the funds to an IRA instead of transferring them to your current 401(k) if you cannot or do not want to. You can still choose between a direct or indirect rollover when rolling over to a new 401(k).
You will need to open an IRA with your broker if you do not currently have one. You should be able to tax your 401(k) as well as your IRA. The majority of 401(k) plans are tax-deferred, which means you lower your taxable income when you make your contributions, but you must pay taxes when you withdraw your funds at retirement. You should use a traditional IRA since these funds are taxed the same way.