Financial Watch | February 2025

On December 27, 2024, the Employee Benefits Security Administration, under the U.S. Department of Labor, launched its new Retirement Savings Lost and Found Database, a tool designed to help U.S. workers and their beneficiaries locate lost or orphaned retirement plans that may still owe them benefits. Created under the SECURE 2.0 Act of 2022, the database serves as a centralized location where individuals or their beneficiaries can search for lost or forgotten retirement accounts and receive guidance on how to claim their funds.¹

Prior to its creation, it was often challenging to find plans left at a previous employer or an employer who may no longer be in business. Now, by inputting personal details such as name and Social Security number, users can easily locate accounts from previous employers.

What type of plans can the database find?

The new DOL website can help you find retirement plans linked to your Social Security number that were sponsored by private sector employers and unions, including:

• Defined-benefit pension plans: These guarantee a lifetime monthly payment, such as an annuity, or a lump-sum payment at retirement.
• Defined-contribution plans: These include plans like 401(k)s, which are primarily funded by employees and grow during their working years.

It’s important to note that the database cannot help you find individual retirement accounts (IRAs), or plans sponsored by government entities or religious organizations.

What information does the database provide?

While database search results will verify that you participated in a retirement plan at some point in the past. However, they won’t tell you if you still have benefits to claim or the disposition of those benefits, such as whether your benefits were paid out as a lump sum, rolled over to another retirement account, or provided as an annuity. Only the plan administrator can tell you if you still have benefits to claim. The good news is the database provides contact information for the current plan administrator. The plan administrator is the company or entity that manages a retirement fund or a pension plan for its participants and beneficiaries and ensures that funds are collected and distributed to all qualified participants or beneficiaries.

What happens when you locate an old plan?

Once you locate an old employer-sponsored retirement plan, you’ll need to decide what to do with any existing plan balance. Generally, you have four options, as indicated below. 

1.Keep the assets at your former employer. If the plan is still with your former employer, you may have the option to keep it there. (Most plans require a minimum account value of $7,000 for the plan to remain.) If you choose this option, you’ll want to make sure your prior employer has your current contact information on file. You will also want to register for access on the plan’s website so you can monitor the account and download statements and other plan-related information. Keep in mind, you won’t be eligible to contribute to the plan, or in most cases, take a loan. After you reach age 73, you will have to take annual required minimum distributions (RMDs). (For those born in 1960 or later, RMDs will start at age 75.)

2.Roll over to your current employer. While not all employers accept rollovers, doing so can help you consolidate your retirement account savings as they continue to grow tax deferred. If your current plan accepts rollovers, you can instruct the old plan administrator to initiate a trustee-to-trustee transfer of the assets to your new employer plan. You will want to consider the range of investment options available in your current employer plan. If you feel they’re too limiting, you may want to consider rolling the assets to an IRA instead.

3.Roll over to an IRA. When you roll over assets from an employer-sponsored plan to an IRA your money has the chance to continue to grow tax-deferred and you may be able to access a broader range of investment choices than those available in your employer's plan. After you reach age 73, you’ll have to take annual required minimum distributions (RMDs) from a traditional IRA every year, even if you're still working. For those born in 1960 or later, RMDs will start at age 75.

You can request a direct rollover from your former employer's plan administrator to the new trustee at your financial institution, or an indirect rollover where you take possession of the funds and then deposit them into an IRA within 60 days from the date you receive the distribution. If you miss the deadline, you could owe a 10% early withdrawal penalty in addition to ordinary income taxes on any distribution that was not rolled over within the 60-day period.²

4.Cash out. While you have the option to cash out, taking money out of tax-deferred accounts prior to retirement should be avoided unless you have no other option. In most cases, if you withdraw funds from your plan before age 59½, the money will be subject to both ordinary income taxes and a potential 10% early withdrawal penalty. Certain exceptions apply so be sure to work closely with a financial professional before deciding which of the four options makes the most sense for you.

How can you access the database?

To access the Retirement Savings Lost and Found Database, you must have a valid ID-Proofed Login.gov account. To learn more, visit LostandFound.DOL.gov.

If you have questions about rolling assets to an IRA or about other tax-smart strategies for retirement, contact the office to schedule a time to talk.

^{1)”Retirement Savings Lost and Found Database.” Dol.gov, 27 DEC 2024, https://lostandfound.dol.gov/. 
2)“Rollovers of retirement plan and IRA distributions.” IRS.gov, 20 AUG 2024, https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions.}