I spoke with a client this week who was lucky enough to find money!

Nope, he didn’t just spot a $20 stuck in a branch from the wind, he realized he had an old IRA he had lost track of. We rolled his old IRA over to his managed account with us with no penalties and he saw a nice increase in portfolio value with forgotten funds.   

Has this happened to you? Or are you someone who is thinking this would never happen to you?

Have you ever left a job where you had a 401k? A couple of months go by as you’re learning your new position and you only think of that “measly” 401k when you’re choosing your investments at the new company.

You know you’ll take care of that old 401k once this account is set up and good to go…..Then you don’t.

Those funds are still yours, no matter how much time has passed.

Contact your previous employer’s HR department to find out the plan administrator, contact the administrator, and gain access to the funds.

Q: Should you cash out that old IRA or 401k instead of transferring to your current investment account?

A: No!

Q: Why not?

A: If the funds are in a traditional 401k the cash out will be treated as taxable income for the year, increasing the amount you owe/reducing the amount you receive. Plus, if you’re under the age 59 ½ you will incur a 10% early withdrawal penalty.

Did your former employer close down, or you can’t get an answer from anyone that helps locate your funds? Don’t fret, there are several resources to find your funds, and I’ve listed two below.

You can use your social security number to search in the National Registry of Unclaimed Retirement Benefits.

You can also register on this Department of Labor site to locate your funds.

Have questions? Schedule a time to talk by clicking here.