More than $2.1 trillion sits in forgotten or left-behind 401(k) accounts, according to a September 2024 report from Capitalize and the Center for Retirement Research at Boston College. That’s up from about $1.7 trillion in 2023.
The report, “The True Cost of Forgotten 401(k) Accounts,” estimates there are 31.9 million forgotten accounts with an average balance of $66,691. Together, they represent almost one-quarter of all 401(k) assets in the U.S.
If you’ve ever switched jobs, there’s a chance some of your retirement money is sitting in one of these accounts. In this article, we’ll walk you through why so many 401(k)s get left behind, the risks of doing nothing, and the exact steps you can take to recover what’s yours.
Why Accounts Get Left Behind
When workers leave a job, they have three options: roll the money into a new 401(k) or IRA, cash it out (with taxes and penalties), or leave it behind. Many choose the third option, often by accident. Some don’t realize they even had a 401(k), others forget, and some put it off and never come back to it.
“There are employees who just forgot, or they never knew, or weren’t paying attention to the fact that they had money in a 401(k),” said Anqi Chen, associate director of savings and household finance at Boston College.
The Risks of Forgotten Accounts
If you leave an account behind, an employer can cash it out if the balance is small. In other cases, they may move the funds into a low-interest account through a forced rollover. Both scenarios mean your money misses out on growth and loses value over time.
The Bigger Picture
As of 2024, 72% of private-sector workers have access to a 401(k)-style retirement plan, and 53% of workers participate. Participation is growing, but the sheer number of forgotten accounts shows how much of a challenge portability still is.
“We think it’s a big issue that gets in the way of us having enough money for retirement,” said Gaurav Sharma, CEO of Capitalize.
How to Find a Lost 401(k)
If you’ve changed jobs, you may have retirement money sitting in an old account. Here’s where to start:
- Contact your former employer’s HR or benefits department.
- Use the National Registry of Unclaimed Retirement Benefits.
- Search the U.S. Department of Labor’s Lost and Found for Retirement Accounts.
- Consider rolling older accounts into your current 401(k) or an IRA so everything is easier to manage.
Don’t Wait to Check
Every year you wait, your money could be sitting idle instead of growing for your future. If you’ve ever changed jobs, take ten minutes today to search the databases above and call your former employers. You could find thousands of dollars waiting for you—money that belongs in your retirement, not left behind.