Lost Track of an Old 401(k)? Your Savings May Be Slipping

TL;DR: USA Today reported on October 21, 2026, via Yahoo Finance, that billions of dollars sit in "automatic rollover" Individual Retirement Accounts. These are created when an employer removes a departed worker's small 401(k) from its plan. The report says the money typically ends up in a cash-equivalent account, "where it might earn 1% or 2% interest per year."

The report leans on a study by the retirement provider PensionBee. After one year, 68% of automatic rollover IRAs had declined in value. After eight years, 39% were still worth less than when they were created. PensionBee's CEO, Romi Savova, told USA Today that millions of Americans have small 401(k)s with old employers and "most have no idea that money can be moved into an account that slowly drains their savings." PensionBee sells retirement account transfers. Treat the study as an interested party's research. The direction of the finding still deserves your attention, because the mechanism is simple: cash earning 1% or 2% while markets compound, which you can check against your own statement in about five minutes.

Why does an old 401(k) lose ground?

A 401(k) left in a plan is usually invested in stocks and bonds. An automatic rollover IRA is different. USA Today says the plan is for workers to build nest eggs by investing in the markets, "not to let the money languish in a low-interest money market account."

Also, Investopedia notes that leaving a 401(k) behind rather than rolling it over "can result in significant fees and potentially missing out on future growth." Fees vary by plan and provider, so check your own statement before assuming a number.

How many forgotten accounts are there?

The estimates are large. CNBC reports that an estimated 31.9 million 401(k) accounts, totaling about $2.1 trillion, remain with former employers, according to 2025 research from Capitalize, which helps people roll over workplace savings to IRAs. Kiplinger reports Capitalize's estimate that the average forgotten balance rose from $56,616 in May 2023 to $66,691 in March 2026.

These are one firm's estimates, and that firm also sells rollover help. Fidelity and Investopedia both put the count near 32 million accounts as of July 2025, but they appear to rely on the same research.

Why does this matter if you are an accredited investor?

You may think this is a problem for people with small balances. Look at your own history, though. If you have changed employers several times, a four-figure account from an early job is easy to lose, and it can sit in cash for years while the rest of your portfolio is deliberately allocated. CNBC cites a Bureau of Labor Statistics survey finding the average worker holds about 13 jobs between ages 18 and 58. Each job is a chance to leave something behind.

It also bears on how you evaluate what you own. Investors who study fee stacks and liquidity terms on private deals should apply the same discipline to idle retirement accounts. If you are weighing a bigger shift in how your retirement money is held, see our piece on the proposed Labor Department rule on alternatives in 401(k)s.

How do you find an old 401(k)?

Start with the free federal tool. The Labor Department's Retirement Savings Lost and Found Database was set up under the SECURE 2.0 Act of 2022. It is built from historical Social Security Administration Form 8955-SSA records, and the agency warns some may be outdated. A 2005 filing may not reflect plan mergers or new administrators.

CNBC reports that of 236,269 unique visitors from launch in late December 2024 through the end of 2025, about 29.5% (69,712) found an old 401(k), pension or other workplace plan tied to their Social Security number. There is a catch. CNBC also says the database currently includes information only for people age 65 or older, so younger savers may need the other routes below.

Fidelity suggests contacting your previous employer's benefits department, asking for the firm that kept the plan's records, then reaching out to that plan administrator directly. If those fail, try your state's unclaimed property database.

What can you do once you find it?

Investopedia says someone leaving a job typically has four options. The table adds what to check for each.

Option	What to check
Roll into a new employer's 401(k)	Whether the new plan accepts rollovers and what its fund menu costs
Roll into an IRA	Fees, investment choices, and whether you hold it in cash by default
Cash out	Taxes and any penalties, which you should confirm with a tax professional
Leave it in place	Whether the plan's fees and investments still suit you

The useful question is not which option is best in general. It is what the money is actually invested in today and what you pay to hold it. An adviser's disclosure documents help here, and our guide to checking an investment adviser on Form ADV shows how.

Common mistakes

The first is assuming a rollover IRA is invested because it is called an IRA. USA Today's reporting shows the automatic version typically sits in a cash-equivalent account. The second is trusting an old address. If you moved after leaving the job, the plan may have no way to reach you, so update your contact information with any plan you find. The third is rolling money over without looking at where it lands. A rollover into another low-yield account only moves the problem.

FAQ

How can I track down an old 401(k) plan? Check the Labor Department's Lost and Found database, then contact your former employer's benefits department and the plan's record-keeper. If those fail, search your state's unclaimed property database, as Fidelity suggests.

Is $400,000 enough to retire at 62? The sources here do not answer that, and any figure would be a guess. It depends on your spending, other income and health costs. A fee-only planner can model it with your numbers.

How much will $20,000 in a 401(k) be worth in 20 years? That depends on how it is invested. USA Today says an automatic rollover IRA may earn 1% or 2% a year, while a typical 401(k) is invested in markets that have historically risen. No honest single number exists.

Why is my 401(k) losing money now? Market declines are one cause. If it is an automatic rollover IRA, USA Today cites PensionBee's finding that 68% of such accounts had declined in value after one year. Read your statement for fees and holdings.

Next step

This week, search the Labor Department's Lost and Found database with your Social Security number, then email each former employer's benefits department and ask who holds your old plan.

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