How do i get my 401k from an old job

Do you know where your money is? If you changed jobs in the last decade, you may be among the millions who accidentally and unknowingly abandoned a 401(k). Time to retrieve it and take control. But how?

Americans lost track of more than $7.7 billion in retirement savings in 2015, according to the National Association of Unclaimed Property Administrators. If you’ve lost an account, don’t feel bad. Some folks just need to drop everything and rush out the door when quitting a job. Others are distracted by a move or swept up in transition. Most folks’ 401(k)s aren’t at the same bank or brokerage they use for other accounts. And many don’t manage the investments in their plan directly. When it comes to nest eggs, out of sight often means out of mind.  

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But good news: that money is still yours! It may be with your old employer, or maybe it’s in an IRA. If your money was invested, it should still be growing. 

But leaving old plans with old employers can have downsides. Fees could be high. Investments made years ago could be very wrong for today. There could be inefficient overlap with your other accounts. 

Scattered accounts are also inconvenient. Managing or living off your retirement savings is easier if it’s all in one place. And once you retire, tracking down multiple accounts and analyzing which ones to tap is a hassle. 

So track them down now. Contact old employers to see if you left funds behind. And check old statements for contact information. There are also websites that can help. To find your old employer’s current contact information, try this website. Check the Labor Department to see if your old plan was terminated. A former employer may even be trying to reunite you with your money, so look at this website to see.

Once you’ve found everything, it’s time to consolidate. You generally have two options: Roll old plans into one IRA or maybe you roll them into your current 401(k) and take advantage of options in that plan. 

Which is right for you? Depends. If your employer’s plan has reasonable fees and uses an investment adviser held to the government’s fiduciary standard, a 401(k) merger could make the most sense, and that’s especially true if your company gives you access to investment professionals who can help you make smart decisions. Staying on track for retirement goals can be difficult without a financial coach. If that coach is a fiduciary, they’re legally required to put your interests first. 

If you already have a trustworthy financial adviser, the IRA rollover approach may be best. Some 401(k)s have limited investment options. Some, sadly, lack good service and support. Rolling your old accounts to an IRA can give you a broader range of investment choices. But beware when seeking advice. Some brokers and non-fiduciaries encourage rollovers, then prod you to buy pricey and inappropriate funds that pay them over-the-top commissions. Worse, they may peddle you an annuity. Annuities in IRAs or 401(k)s are beyond senseless because they are tax-deferred, so the annuity’s tax shelter is redundant. That’s on top of the ubiquitous nasty problems with variable and index annuities.  

Whatever you decide, the next step is contacting the companies managing your old 401(k)s. They’ll tell you how to move the money. Carefully follow their instructions. Some firms do this plan-to-plan — seamless! If they send you a check, get the funds into a retirement account within 60 days — otherwise you could incur tax penalties.

And that’s it. When everything is merged, you can work on your own or with your adviser to make sure the money is invested right for your goals and needs.

Tracking down misplaced savings takes some work. But it’s worth it. Everything will be centralized. You’ll likely save money on fees. It all will work toward your ultimate retirement goals. You will soon thank yourself.

Ken Fisher is the founder and executive chairman of Fisher Investments, author of 11 books, four of which were "New York Times" bestsellers, and is No. 200 on the Forbes 400 list of richest Americans. Follow him on Twitter @KennethLFisher

The views and opinions expressed in this column are the author’s and do not necessarily reflect those of USA TODAY.

If you find yourself leaving a job where you were actively participating in a 401(k), chances are you’re not sure what to do with it, and that could cost you. When you leave a job, you have a few options about what you can do with your 401(k). You can leave it where it is and risk the chance of forgetting about it and misplacing it, cash it out (which experts agree is a bad idea), transfer to your new job’s 401(k) plan (if there is one), or roll it over into an individual retirement account, or IRA. 

Experts agree that you should never cash out your 401(k) before retirement age because you run the risk of not being on track for your golden years, not to mention you’ll get hit with taxes and penalties. Instead you should do one of two things: roll over your old 401(k) to your new job’s 401(k) plan, or roll it over to an IRA. Doing either of these will put your money in one spot and give you the option to increase your investment options. 

But whatever you do, don’t leave that 401(k) behind. Read on to learn the pros and cons of a 401(k) rollover and why you should consider moving it when you leave jobs.

What Is a 401(k)? 

A 401(k) is a retirement savings plan offered by employers that allows workers to defer a portion of their paycheck into a long-term investment account. Some employers match a portion of contributions, while others just provide the 401(k) accounts themselves. By investing your money, you let it grow through the power of compound interest. A 401(k) is just a handful of tax-advantaged retirement savings vehicles available. Other options include an IRA for self-managed retirement savings, a 403(b) for public school employees and tax-exempt organizations, a 457(b) for state and local government employees and some non-profit employees, and a TSP for federal government employees.

What Is a 401(k) Rollover?

A 401(k) rollover is when you move the assets you accumulated in a previous employer’s 401(k) plan into a new employer’s 401(k) or into a traditional IRA. It’s something you want to take advantage of when you leave your job. “By rolling over your old 401(k) assets, you can keep your retirement savings all in one place,” says Amy Richardson, CFP, Senior Manager and Financial Planner at Schwab Intelligent Portfolios Premium.

Moving your old 401(k) over helps keep your money in one place. Rather than have many different retirement accounts spread out everywhere, you can keep all your retirement money in one account. It makes it easier to keep track of. It also means you can avoid paying fees or charges twice, if both accounts charge them.

It also helps increase investment choices and ownership. Even if you don’t move your 401(k) to your new employer, you can roll it over to an IRA. This gives you more ownership of your own account regardless of what happens with your new employer. If you ever leave in the future, your traditional or Roth IRA can stay with you.

What Happens to Your 401(k) When You Leave a Job?

Essentially, nothing happens to your 401(k) when you leave a job as it doesn’t automatically come with you to the next place. But you’ll not be able to make new contributions or access many investment choices. 

Pro Tip

Roll over your 401(k) into your new employer’s plan or get an individual retirement account. Leaving your retirement account behind means you’re missing out on money that belongs to you.

“When you leave your job, your 401(k) plan stays as it is unless you choose to roll it over,” Richardson says. “Keeping your plan with your former employer means the account remains subject to that employer’s plan rules, including investment choices and withdrawal options.”

Experts recommend staying away from cashing it out completely if you’re under retirement age, as this will hurt your ability to retire later on. Plus, you’ll get hit with a 10% tax penalty and other fees.

“When you leave a job, any of the vested money in your 401(k) belongs to you,” says Brandon Renfro, PhD, CFP and Founder of Belonging Wealth Management. “You can withdraw that in cash, but you’ll have to pay taxes and a 10% penalty if you are under 59 and a half. With a rollover, on the other hand, you can move that money into another retirement account without incurring any taxes or penalties and let it continue to grow.”

Should You Roll Over Your 401(k) From an Old Job?

If your new job doesn’t offer a 401(k) plan, you might have to move your old 401(k) to an IRA. While similar, IRAs and 401(k)s don’t have the same rules and requirements, but you’ll be able to invest your money in a large amount of investment choices. 

Steps To Roll Over Your 401(k)

Before you can roll over your 401(k), you’ll need to open an account to roll it into. Consider your options, like your new employer’s 401(k) or an IRA.