Q&A: How to track down an old retirement account

Dear Liz: I worked for a company during the late 1990s. When I left, I had a 401(k) worth approximately $10,000. I recently found an old 401(k) statement and called the plan administrator. I was told my company’s accounts had been transferred to another plan administrator in 2008. I called the new administrator and was told they also could not find my 401(k) using my Social Security number. How do I proceed? What are my options?

Answer: Get ready to make a lot more phone calls.

There’s no central repository for missing 401(k) funds — at least not yet. The Pension Benefit Guaranty Corp., which safeguards traditional pensions, has proposed rules that would allow it to hold orphaned 401(k) money from plans that have closed. That wouldn’t start until 2018. Another proposal, by Sen. Elizabeth Warren (D-Mass.) and Sen. Steve Daines (R-Mont.), would direct the IRS to set up an online database so workers could find pension and 401(k) benefits from open or closed plans, but Congress has yet to take action on that.

If your balance was less than $5,000 — which is possible, given the big market drop in 2008-2009 — your employer could have approved a forced IRA transfer and the money could be sitting with a financial services firm that accepts small accounts. If the plan was closed and your employer couldn’t find you, the money could have been transferred to an IRA, a bank account or a state escheat office. You can check state escheat offices at Unclaimed.org, but searching for an IRA or bank account may require help.

If your employer still exists, call to find out if anyone knows what happened to your money. If the company is out of business, you may be able to get free help tracking down your money from the U.S. Department of Labor (at askebsa.dol.gov or (866) 444-3272) or from the Pension Rights Center, a nonprofit pension counseling center (pensionrights.org/find-help). Another place to check is the National Registry of Unclaimed Retirement Benefits, a subsidiary of a private company, called PenChecks, that processes retirement checks, at www.unclaimedretirementbenefits.com.

One more wrinkle: Your employer or a plan administrator could insist you cashed in your account at some point. You may be able to prove otherwise if you’ve kept old tax returns, since those typically would show any distributions.

Your experience shows why it’s important not to lose track of old retirement accounts. Your current employer may allow you to transfer old accounts into its plan, or you can roll the money into an IRA. Either way, it’s much better to keep on top of your retirement money than to try to find it years later.

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