Find Your 401(k) With Your Social Security Number. You can find your 401(k) by using Capitalize's 401(k) Finder tool, contacting your HR administrator, or through the National Registry of Unclaimed Retirement Benefits. The process is quick and only requires basic information, including your Social Security number.
The simplest way is to contact your previous employer's human resources department and ask if you still have a leftover 401(k) plan. If you still have old statements, they should include your plan's account number, as well as the plan administrator's contact information.
There's no charge to contact your employer or 401(k) plan administrator for information. If that doesn't work, the government provides several free search tools through the DOL, the National Registry of Unclaimed Retirement Benefits, and the National Association of Unclaimed Property Administrators.
If you are laid off or quit, you can roll over your 401(k) to an IRA. To avoid any fees and tax withholding, consider a direct rollover. Other options include leaving your 401(k) with your former employer's administrator (if it's over $5,000) or withdrawing the money and paying taxes and penalties on the funds.
Leave your account with your former employer.
If your plan sponsor allows it, you can keep your retirement savings in their plan after you leave. While your earnings will still grow tax-deferred, you won't be able to contribute additional money to the account, though you can continue to manage your investments.
Although legally, you have every right to liquidate your old 401(k) account and receive a cash distribution upon termination, doing so would reduce your savings for retirement. Additionally, the distributions will increase your annual taxable income.
While there is no legal time limit on how long an employer or a former employer can freeze your 401(k) account, companies usually try to rectify these situations as soon as possible. Keep in mind that even during the blackout period, your money stays invested, and your account can continue to grow.
There are three main ways to find an old 401(k): contacting your old job, tapping into various databases or checking with the state's unclaimed property department.
The short answer is that yes, you can withdraw money from your 401(k) before age 59 ½. However, early withdrawals often come with hefty penalties and tax consequences.
Your employer's website
Some employers allow you to check your 401(k) balance through their websites or online HR portal. Get in touch with your manager or company's HR department to learn if there's a way to find your 401(k) balance through the company website.
You can keep a 401(k) with your previous employer, roll it into an IRA, roll it into a new employer's plan, or cash it out.
Perhaps that's why there are some 24 million forgotten 401(k)s holding assets in excess of $1.3 trillion. If left unattended for too long, old accounts can be converted to cash—and even transferred to the state as unclaimed property—forgoing their future growth potential.
Failure to follow 401(k) transfer rules may result in extra penalties and taxes. For example, if you don't do a direct rollover and receive the funds from your previous employer's plan in the form of a check, a mandatory 20% withholding will apply.
Income from a 401(k) doesn't affect the amount of your Social Security benefits, but it can boost your annual income to a point where those benefits will be taxed. This can be tricky for someone required to withdraw from their 401(k) and collect Social Security.
Any money you contribute to your 401(k), such as money contributed via payroll deduction, is money you can't lose. That employer can't take that money from you, even if you leave the company entirely. But there is another portion of your retirement plan you may not be able to claim: your vested balance.
The National Registry of Unclaimed Retirement Benefits is a good place to start. By entering your Social Security number, you can quickly see if there are any unclaimed 401(k) funds that belong to you.
However, Meet Beagle isn't a free platform like Capitalize. You'll pay $3.99 a month with Meet Beagle. A 401(k) loan charges a $2 monthly maintenance fee and an initial fee of $99. Meet Beagle is the better option for asset management and loan access.
Any money you put into the 401(k) always belongs to you, but you may not be entitled to any employer contributions when you leave. It depends on whether your plan includes a vesting schedule. If so, how long you worked before quitting will determine what happens to those contributions.
To cash out a 401(k) from an old job, contact your plan administrator and request the account be liquidated and the funds be sent to you via check or bank transfer.
If your 401(k) balance is less than $5000 when you leave a job, it may be at risk of disappearing. Employers are allowed to push out 401(k) accounts held by former employees if they have a balance below $5,000, and the participant has not given instructions on what to do with the money.
Yes, it's possible to make an early withdrawal from your 401(k) plan, but the money may be subject to taxes and a penalty. However, the IRS does allow for penalty-free withdrawals in some situations, such as if the withdrawal purpose qualifies as a hardship or certain exceptions are met.
Transferring Your 401(k) to Your Bank Account
That's typically an option when you stop working, but be aware that moving money to your checking or savings account may be considered a taxable distribution.