With the rise of job hopping post-Great Resignation, the number of forgotten 401(k) accounts has surged to 29.2 million, totaling about $1.65 trillion in assets, according to Capitalize. Nearly half of employees leave funds in old plans, unaware of potential fees that can accumulate over time, which may lead to significant losses in retirement savings; 33% of workers opt to cash out despite tax penalties. To locate forgotten accounts, workers can utilize the Department of Labor’s retirement savings database and the National Registry of Unclaimed Retirement Benefits, and new measures aim to facilitate automatic transfers of small balances to new employer plans.
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