Millions of Americans have retirement savings they don’t even know they’re missing. A staggering 29 million forgotten or abandoned 401(k) accounts hold approximately $1.65 trillion in assets, according to Capitalize research from May 2023. To tackle this issue, the U.S. government is rolling out an innovative tool to help retirees reclaim their lost funds.
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Here’s everything you need to know about the new Retirement Savings Lost and Found database, set to launch in 2025, and how you can take action to track down your missing retirement money today.
Why Are Retirement Savings Being Lost?
Missing retirement savings are a growing concern, affecting millions of Americans. Here are some common reasons these accounts get “lost”:
- Incomplete Records: Poor recordkeeping by retirement plan administrators leads to missing participant data.
- Job Changes: Many employees lose track of old 401(k) accounts after switching jobs.
- Mergers and Closures: Employers merging with other companies or going out of business can sever the connection between workers and their retirement plans.
These forgotten accounts represent a significant portion—nearly 25%—of all 401(k) plan assets in the U.S.
What is the Retirement Savings Lost and Found Database?
As part of the SECURE 2.0 Act, the Department of Labor’s Employee Benefits Security Administration (EBSA) is creating the Retirement Savings Lost and Found database.
This online search tool will allow individuals to locate their lost or forgotten retirement accounts by entering their personal information.
Key Features of the Database:
- Data Collection Began in November 2024: Plan administrators started submitting account information to the government.
- Launch Date: The database is expected to go live by December 29, 2024.
- Search Capability: Workers and beneficiaries will be able to input details to find accounts associated with past employers.
“Our goal is to make sure workers and their beneficiaries receive all the retirement benefits they earned,” said Lisa M. Gomez, Assistant Secretary for Employee Benefits Security.
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Challenges in Building the Database
Despite its promise, the government has encountered roadblocks in creating a comprehensive database:
- Data Sharing Issues: The IRS has hesitated to share confidential tax data with the Department of Labor, complicating efforts to verify account ownership.
- Privacy Concerns: Industry groups, like the American Benefits Council, worry about exposing sensitive personal information unless required by law.
Still, the EBSA is optimistic about gaining cooperation from retirement plan administrators, recordkeepers, and service providers to populate the database.
What You Can Do Now to Track Down Lost Retirement Savings
While the database is under development, there are ways you can search for missing retirement accounts today:
1. Contact Former Employers
If you suspect you had a 401(k) at a previous job, reach out directly to your former employer or their HR department.
2. Reach Out to the EBSA
The EBSA can assist with locating and reclaiming lost funds. Their enforcement efforts since 2017 have recovered over $7 billion in retirement benefits for missing participants.
3. Use the Abandoned Plan Database
The Department of Labor’s Abandoned Plan database can help you locate terminated or inactive plans from employers that no longer exist.
Why This Matters
For millions of Americans, these lost accounts could be the key to achieving a financially secure retirement. With so much at stake, it’s crucial to take proactive steps to find and consolidate your retirement funds.
The upcoming Retirement Savings Lost and Found database represents a game-changing solution for millions of workers and retirees. By 2025, tracking down your missing retirement savings will be as simple as conducting an online search.
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Take Action Today
Don’t wait for the database to launch—start your search now. Reclaiming lost retirement savings could make a significant difference in your future financial stability. Stay tuned for updates on the database and take advantage of existing resources to recover what’s rightfully yours.
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