It’s common for professionals to change jobs several times throughout their careers — and while this opens up opportunities for growth, it can also lead to scattered retirement accounts. In fact, according to a report by Capitalize, about 29 million opens in a new window 401(k) accounts remained forgotten in 2023, amounting to nearly $1.65 trillion in unclaimed retirement benefits nationwide. Capitalize, which launched in 2020, said its analysis is based on data from the Internal Revenue Service, Department of Labor and Bureau of Labor Statistics, as well as academic research and information from policy experts.

Managing these accounts effectively is crucial to building a secure financial future. Fortunately, there are steps you can take to locate, reclaim and consolidate your retirement savings for better long-term planning. Here’s how:

Find your lost retirement accounts.

If you’ve changed jobs multiple times, it’s easy to lose track of old 401(k) accounts, retirement savings or other benefits. According to the Pension Benefit Guaranty Corporation (PBGC), a significant number of workers lose track of their retirement accounts due to various reasons, such as changing addresses, lack of communication from former employers or simply forgetting about them.

This can create challenges when planning for your retirement, as scatted accounts may not work together effectively to maximize your savings. These resources can help you locate and consolidate your accounts:

 

• Pension Benefit Guaranty Corporation (PBGC) opens in a new window: If you had a pension with a company that closed or ended its pension plan, the PBGC may hold the unclaimed pension benefits. Visit the PBGC’s website to search their unclaimed pension database and see if you have a benefit waiting.
• U.S. Department of Labor’s abandoned plan database: Provided by the Employee Benefits Security Administration opens in a new window, this tool helps locate terminated or inactive retirement plans.
• National Registry of Unclaimed Retirement Benefits opens in a new window (NRURB): This registry connects former employees with unclaimed retirement benefits. It’s a useful tool for finding accounts you may have forgotten about.
• Contact former employers: Reach out to the human resources departments of your previous employers. They can provide you with information regarding any retirement plans you were enrolled in.
• Check with financial institutions: Financial advisors or brokerage firms you’ve worked with may have records of your old retirement accounts.
• IRS Form 5500 opens in a new window: Employers are required to file Form 5500 for their retirement plans. This form provides a wealth of information about the plan and can help you locate it.

Understand changes in retirement account rules.

Recent updates, like those introduced in the Secure 2.0 Act opens in a new window, have made significant changes to retirement planning. These provisions are particularly important for mid-career professionals managing multiple accounts. Key points include:

• Catch-up contributions: For those aged 50 and older, catch-up contributions allow additional deposits into retirement accounts, helping you boost your savings as you approach retirement.
• Required minimum distributions (RMDs): The Secure 2.0 Act has raised the age opens in a new window for RMDs, allowing more flexibility in managing your savings and taxes. This can be especially helpful if you’re consolidating accounts and want to keep funds invested longer.

Consolidate your accounts.

After locating your old retirement accounts, consider consolidating them into a single account or fewer accounts in order to make management easier and potentially reduce fees. Consolidation can also make it easier to manage RMDs once you reach the eligible age, as you will have fewer accounts to track. If you want to consolidate your accounts, here are a few options to consider:

• Roll over into an IRA: You can transfer funds from old 401(k)s, 403(b)s and other accounts into an Individual Retirement Account (IRA). An IRA offers flexible investment options and could potentially reduce your fees, making it easier to manage your retirement assets.
• Transfer to your current 401(k): If your current employer offers a 401(k) plan, rolling your old accounts into the new plan can streamline management and consolidate your investments.
• Consolidate pensions (if possible): Some employers or pension administrators may allow consolidation of multiple pensions. Check with your pension plan administrator to explore this option.
• Keep it simple: Consolidating into one or two accounts can reduce the complexity of managing multiple accounts, making it easier to keep track of your investments and retirement goals.

Gain control over your hard-earned money.

Tracking and consolidating old retirement accounts can feel daunting, but taking proactive steps now can significantly impact your financial future. By organizing your accounts, you ensure your hard-earned money is working for you.

For more detailed guidance, consult with your trusted Commerce Bank advisor, who can help you navigate the process and make the most of your retirement savings.

Do you think you have unclaimed property?

Each year financial institutions, businesses, government agencies and other organizations turn over millions of dollars opens in a new window in cash and the contents of safe deposit boxes to the Treasurer’s Office. If a company terminates a retirement plan, regardless of the account balance, there are options on what it’s allowed to do with the money. Generally, an employer is required to distribute the assets as soon as possible. For example, it may be rolled over into an IRA, deposited into a bank or left with your state’s unclaimed property fund.

You can search for unclaimed property through the National Association of Unclaimed Property Administrators opens in a new window and the National Association of State Treasurers opens in a new window.

These tools help return unclaimed property to its rightful owners — and it’s free to search. Check today to see if you have any unclaimed property waiting for you.