How to keep track of your financial accounts

Financial FOCUS®

Provided by the Edward Jones office of Kevin Beck and Madeline Beck

For many years, people have saved and invested through 401(k) plans, IRAs and other financial accounts. It may seem unlikely that they would lose track of that money, but it happens more often than you might think.

About 1 in 7 people has unclaimed cash or property, amounting to billions of dollars, according to the National Association of Unclaimed Property Administrators.

There are many ways money gets overlooked. People change jobs and forget about retirement accounts, move without leaving a forwarding address, change names without notifying former employers, or discover that an employer has gone out of business or merged with another company.

Whatever the cause, losing track of accounts that could be worth thousands of dollars is never ideal. So how can you reduce the risk?

Consider these steps:

• Keep thorough records. Save information on all of your financial, investment and retirement accounts, and make sure a family member knows where those records are stored.

• Limit the number of accounts you maintain. Fewer bank and brokerage accounts can make it easier to stay organized. When possible, consolidating accounts may help.

• Update your address when you move. Contact financial service providers and any former employers that may hold retirement accounts for you.

• Report any name changes. Notify current and former 401(k) plan administrators, banks, brokerages and any other institutions tied to your money.

• Stay organized when you change jobs. If you leave a job, you may be able to keep your 401(k) with your former employer, but you will need to track it carefully. You may also have the option of rolling it into your new employer’s plan or into an IRA.

• Tell your financial professional about every account. If you work with a financial professional, sharing details about all past and current IRAs, 401(k)s or similar employer-sponsored plans can help with account tracking.

Even with good habits, you may already suspect that some money has been left behind. What then?

If you think an IRA has gone missing, review old tax returns and bank statements to trace your contributions and identify the financial provider that held the account. If you are looking for a 401(k), contact your former employer’s plan administrator.

There are also several resources that may help. The Department of Labor has launched a retirement savings lost-and-found database at lostandfound.dol.gov, which can help locate pension or 401(k) plans connected to your Social Security number. For an IRA, unclaimed.org, the website of the National Association of Unclaimed Property Administrators, may be useful. For other missing funds, including uncashed corporate or financial institution checks, inactive brokerage accounts and unclaimed safe deposit boxes, MissingMoney.com offers another place to search.

These websites do not guarantee that you will find a lost account or other missing money, so some personal detective work may still be needed. Still, the old saying holds true: an ounce of prevention is worth a pound of cure. In this case, that means staying on top of your accounts from start to finish.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.