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USA Today
4 days ago
- Business
- USA Today
$1.7 trillion sits in lost and forgotten 401(k) accounts. Is one of them yours?
$1.7 trillion sits in lost and forgotten 401(k) accounts. Is one of them yours? Show Caption Hide Caption How are tariffs and your 401(k) retirement savings intertwined? Experts say a rise in tariffs can lead to several factors that impact your retirement savings. At least $1.7 trillion languishes in lost or forgotten 401(k) accounts, with an average unclaimed balance of $56,616. Those 29 million idle accounts represent one quarter of all assets held in 401(k) retirement plans. And those figures come from a 2023 report from Capitalize, a financial services firm. The numbers could be higher now. 'That's a heck of a lot of money,' said James Royal, an investing analyst at Bankrate. 'You could really have tens of thousands of dollars out there.' It's hard to fathom how anyone could lose track of $56,000, until you stop to consider the circumstances behind the typical lost 401(k) account. 'People who are leaving a job, and especially if they're moving to another one, usually have a bunch of things going on,' said David John, a senior strategic policy adviser at the AARP Public Policy Institute. The average American born between 1957 and 1964 has changed jobs about a dozen times, AARP reports. A record 47 million Americans quit their jobs in 2021 alone, amid the Great Resignation. A worker who leaves a job after a year or two might have only a few thousand dollars saved in a retirement account. In the stress of a job change, it's easy to lose track of those funds. Workers might struggle with how to 'roll over' the savings into a new account. The balance might not seem to justify the effort. Wait a decade or two, however, and the balance in a forgotten account can balloon into a tidy sum. The reason: Most 401(k) funds tend to be invested in stocks, and the market has made enormous gains in recent decades. 'Even 10 or 15 years ago, if you put in $5-, $6-, $7,000, that could be worth three, four or five times as much today,' Royal said. Tracking down lost 401(k) accounts has never been easier, according to Royal and other retirement-plan experts. A curious consumer with an hour to spare can go a long way toward rooting out lost savings. Here are some tips, starting with the easy stuff. Finding a lost 401(k): The low-hanging fruit First, visit the National Registry of Unclaimed Retirement Benefits. As the name suggests, it's a national database of unclaimed retirement accounts. Enter your Social Security Number, run a quick search and see if any idle accounts come back. Next, proceed to the Retirement Savings Lost and Found Database. This is a new site, launched by the Department of Labor to help workers locate unclaimed benefits. The lost and found site is 'still trying to reach scale with a lot of providers' and not yet comprehensive, said Rita Assaf, vice president of retirement savings at Fidelity. But it's another convenient, one-stop destination for finding retirement funds in your name. Third, visit Missing Money, a clearinghouse of unclaimed property held by U.S. states and Canadian provinces. Another one-stop site, Missing Money can direct users to all sorts of unclaimed property, including retirement accounts. 'It's been around for a few years, but it's not as widely known as it should be,' said John of AARP. Finding a lost 401(k): Some effort required The steps above should provide a good sense of potential unclaimed retirement funds in your name. The next moves might take a bit more time. Search your employment records. Look for old retirement plan statements, in electronic or paper form. Alternately, seek out old pay stubs and W-2 forms, and look for contributions to retirement plans. Contact old employers, if you can find them. Start with the human resources department. Someone there might know if you participated in a 401(k) or, at a minimum, which company administered the plan. If you think you know which plan administrator held your account, contact that company directly. 'There are not that many 401(k) plan administrators out there,' said Kate Ashford, a retirement expert at NerdWallet. 'You could take an afternoon and call them all.' Ask to speak to the 401(k) department. A representative will typically ask for your Social Security Number and other identifying information, which can help the administrator find any old retirement accounts under your name. If a lost retirement plan is 'from many years ago,' Assaf said, 'that plan may not still be available at Fidelity. It could be somewhere else.' For retirement accounts with a balance under $1,000, a plan administrator may have liquidated the account and cut a check, which might have gone 'to your last-known address,' Ashford said. For balances in the low thousands, the administrator may have rolled the account into an IRA at another financial institution. Finding a lost 401(k): Other resources Several other sites can help consumers search for clues about abandoned retirement accounts. The Department of Labor's abandoned plan database can help an ex-worker locate a terminated plan. The same agency allows users to search a database of Form 5500, which is filed annually for 401(k) plans and can help users identify and contact both former employers and plan administrators. But records only go back to 2010. Don't want to search for lost 401(k) funds yourself? At least two private companies, Capitalize and Beagle, operate concierge services that can do it for you. Can I have that 401(k) to go? Fewer 401(k)s will go missing in future, experts say, thanks to the evolving concept of "auto-portability" in retirement plans. A new initiative in the retirement-savings industry encourages workers to roll over a 401(k) account into an IRA when they leave a job, whereupon the money can automatically transfer to a retirement plan at a new employer. The auto-portability program applies to accounts valued at $7,000 or less. Research shows low-value accounts are more likely to be cashed out or forgotten, potentially losing thousands of dollars of compounded interest over time. In 2022, a consortium of private retirement-plan providers announced a collaboration to boost the portability of small retirement accounts. When someone leaves a job, the network of providers will make sure that any retirement funds 'move seamlessly from one job to another,' said John of AARP.
Time of India
20-05-2025
- Politics
- Time of India
Government extends tenure of Intelligence Bureau director Tapan Kumar Deka by one year
File photo NEW DELHI: The central government on Tuesday extended the tenure of Intelligence Bureau director Tapan Kumar Deka by one year "until further notice". "The Appointments Committee of the Cabinet has approved the extension in service of Shri Tapan Kumar Deka, IPS (HP:88) as Director, Intelligence Bureau for a period of one year beyond 30.06.2025 or until further orders, whichever is earlier, in relaxation of the provisions of FR 56 (d) and Rule 16 (1A) of All India Services (Death cum Retirement Benefits) Rules, 1958," the ministry of personnel, public grievances and pensions department of personnel and training said in an official statement. Deka is a 1988-batch IPS officer of the Himachal Pradesh cadre. His tenure as director of IB will now continue beyond June 30, 2025.
Yahoo
26-01-2025
- Business
- Yahoo
5 Money Moves To Make in Early 2025 To Maximize Your Social Security Benefits
Boosting your Social Security benefits now rather than later will significantly help increase future payouts and plan for a comfortable retirement. Whether you're years away from retirement or approaching retirement age, taking small steps now could yield big benefits later. Social Security Benefits Might Be Harder To Qualify for in the Future: Explore More: 4 Low-Risk Ways To Build Your Retirement Savings in 2025 Here are five money moves to make in early 2025 to maximize your Social Security benefits. Older workers remain a strong and vibrant part of the nation's workforce. According to an Employee Benefit Research Institute (EBRI) report, the prime working age population (25 to 64 years old) has significantly fallen, and older workers are filling the gap, with baby boomers making up the largest share of the workforce. According to data collected by Vox, many boomers chose to remain in the workforce because they can't afford to retire, rising healthcare costs and longer life expectancies. Other older workers enjoy the structure and purpose that come with work and may not feel ready to retire. In addition, Social Security benefits are calculated based on an individual's highest 35 years of earnings. Therefore, if potential beneficiaries have fewer than 35 years of earnings or low earning years, those years are averaged as $0. Retirees should consider working extra years to find opportunities to increase their income to replace lower-earning years. This could significantly increase their average monthly earnings. Consider This: Tom Buckingham, the Chief Growth Officer at Nassau Financial Group, said the best thing retirees can do to boost their future Social Security benefits if they haven't claimed them yet is to wait another year or more to do so. 'The benefits of waiting to claim until as late as age 70 are significant,' Buckingham said. Retirees should consider their budget and determine whether they can rely on savings, part-time work or other income sources to postpone claiming. The Social Security Administration's Retirement Benefits Calculator can help older adults assess how waiting will affect their monthly benefits. Consult with a certified financial planner (CFP) who can provide personalized guidance and help navigate important questions and make informed decisions. 'You and your CFP should carefully review your current budget and estimate your cash flow needs,' said Melissa Murphy Pavone, founder at Mindful Financial Partners. 'Before taking retirement assets and potentially paying an early distribution if prior to age 59 ½, take a look at your emergency fund.' Pavone explained, 'Individuals often overlook the impact of healthcare costs in retirement. This added expense, if not accounted for, can quickly deplete retirement savings.' Mistakes in retirees' earnings records could cost them money. For example, if an employer didn't properly report one year of an employee's earnings to Social Security, the error could reduce an individual's future benefit payments. According to the Social Security Administration's website, 'Over your lifetime, that could cost you thousands of dollars in retirement or other benefits that you're entitled to receive. It's important to identify and report errors as soon as possible.' In addition, the longer retirees wait to report and correct errors, the harder it could be for them to get old tax documents. In addition, some employers may no longer exist or be able to provide past payroll information. Social Security should only be one piece of retirees' income strategy. Ideally, Social Security should be able to replace about 70 to 80% of an individual's income, and makeup around 40 to 50% of a person's overall retirement income. Financial advisors recommend having multiple income streams during retirement — including other savings and investments, pensions and retirement accounts — to maintain a comfortable retirement lifestyle. 'One great option is a fixed indexed annuity with guaranteed income benefits,' Buckingham said. 'These products are a great source of supplemental income for life. There are even products that allow the owner to take a higher income for a period of time, which could provide a bridge that allows them to delay claiming Social Security to enrich those benefits. Such a combination would be a strong foundation of a retirement plan.' More From GOBankingRates 4 Low-Risk Ways To Build Your Savings in 2025 3 Things You Must Do When Your Savings Reach $50,000 This article originally appeared on 5 Money Moves To Make in Early 2025 To Maximize Your Social Security Benefits Sign in to access your portfolio
