In the ultimate days of the Biden administration, the U.S. Department of Labor quietly released a web based tool to assist tens of millions of Americans more easily track down lost or forgotten retirement accounts from private-sector employers.
It’s been years within the making, stemming from a directive in 2022’s SECURE 2.0 Act retirement-reform laws. Congress directed the Labor Department to create a search engine for abandoned retirement accounts by Dec. 29, 2024.
The department appears to have met that deadline, pushing its Retirement Savings Lost and Found Database live just before the tip of the 12 months.
Here’s what you could find out about it.
Tracking down lost retirement accounts
In November, the Labor Department sent out a notice asking retirement plan administrators to submit accountholder records to populate its latest database. The agency can also be counting on information from the U.S. Department of the Treasury and the Social Security Administration to assist employees track down lost retirement advantages.
It’s an enormous job. Based on the financial technology firm Capitalize, American employees have left behind nearly 30 million 401(k) plans as of 2023, accounting for some $1.7 trillion in unclaimed assets. In other words, over 25% of all money in 401(k)s is sitting in inactive retirement accounts.
Job switching is a significant reason why. The Labor Department notes that it may well be easy for employees to ignore these accounts in the event that they don’t roll over the funds. “Employees may lose track of their retirement plans after they alter jobs or after a previous employer merges with one other company or goes out of business,” the agency wrote within the notice.
The answer? Its latest lost-and-found tool.
Methods to find lost retirement savings
The retirement savings tool is up and running at Lostandfound.dol.gov.
Before you may start trying to find old retirement accounts, you’ll have to enroll in an ID verification service through Login.gov.
You’ll need several things to confirm your identity:
- Social Security number
- Date of birth
- Legal name
- Valid email address
- A driver’s license or state-issued ID card
- A cell phone with access to an online browser
Verifying your identity through Login.gov may take several minutes. You will want to take clear photos of the back and front of your ID in addition to a well-lit selfie photo with none hats, glasses or other obstructing accessories on.
If digital verification isn’t working, your other option is to finish the enrollment process in person at a close-by post office. You will want to bring the documents mentioned above with you; you will also have to give you the chance to print out a barcode generated once you arrange your in-person appointment on the web site.
After you’ve verified your identity, return to Lostandfound.dol.gov and choose the “register with Login.gov” button to start your search. Any matched retirement accounts will robotically display on a results page, and the department will list the contact information for the plan administrator so you may contact them and collect any advantages that could be owed to you.
Limitations of the database
The largest drawback in the mean time is that retirement plan administrators aren’t yet required to submit this information. The Labor Department is requesting that administrators submit records and update them annually, but compliance is voluntary.
The database only includes retirement accounts offered by private-sector employers or unions, reminiscent of pension plans and 401(k)s (or 403(b)s for nonprofit employees). And the accounts should be attached to your Social Security number.
Other retirement plans, like individual retirement accounts (IRAs), won’t show up since they aren’t offered by employers.
The department’s website also says that simply because an account shows up within the database doesn’t mean that you simply’re owed any money. The database simply shows all retirement plans associated along with your Social Security number. You will want to contact your retirement account administrator to verify your unclaimed advantages.
It’s also possible that no retirement accounts will show up within the search results. (This was the case once I tested it out, though I actually have several accounts through previous employers.)
If no matches are found, an error message prompts you to examine back later because the database is “consistently being updated.”
The department didn’t reply to Money’s request for comment on what number of accounts are currently within the database or when more accounts will likely be added.
In a statement to the industry trade publication Plansponsor shortly after the database’s launch, a department spokesperson under the Biden administration encouraged retirement plan administrators to send of their records to assist construct out the tool.
“While the database has been launched,” the spokesperson said, “we hope that future improvements will end in higher data quality.”
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