- DOL launched Retirement Savings Lost and Found Database at LostandFound.dol.gov to locate old 401(k)s and pensions.
- Tool is a starting point; contact plan administrators to confirm details. It excludes IRAs and some plans and requires Login.gov identity verification.
- If you find an old plan, consider rollovers or consolidation, review fees and investments, and consult advisors for an action plan.
- IRS added seven additional safe harbor reasons under SECURE 2.0 to avoid the 10 percent early withdrawal penalty; plans may not adopt them.
- No 10% penalty does not equal no taxes; you may owe income tax. Always check plan rules and consult before withdrawing.
Two quick retirement updates we thought you’d actually want to know about, especially if you (or your kids) have switched jobs over the years.
1) Missing an old 401(k)? There’s a new “lost and found” tool
The Department of Labor just launched a Retirement Savings Lost and Found Database to help people track down retirement plans tied to former private-sector employers and unions (think old 401(k)s or pensions): LostandFound.dol.gov.
A few helpful “fine print” notes:
- It’s a starting point, not a magic vault. It may show you had a plan, but you’ll still need to contact the plan to confirm what’s there today.
- It doesn’t include IRAs, and it may not include some government, 403(b), or certain religious-organization plans.
- You’ll need a Login.gov account with identity verification (like a driver’s license).
If you find an old plan and want help deciding what to do next (roll it over, consolidate accounts, check fees/investments), we’re happy to help.
2) The IRS clarified more “OK reasons” for early withdrawals (no 10% penalty)
You’ve probably heard that taking money out of retirement accounts early can trigger an extra 10% penalty. The IRS recently added guidance around seven more situations where that penalty may not apply (these relate to SECURE 2.0).
Here are the big ones:
- Emergency personal expense, generally up to $1,000 once per year
- Domestic abuse survivors: up to $10,000 in certain cases/timing
- Terminal illness with physician certification
- Qualified disasters: up to $22,000, within specific timelines
- Pension-linked emergency savings accounts
- Certain public safety employees / private-sector firefighters, after separation (rules apply)
- Some long-term care insurance premiums for you and/or your spouse
It’s important to note that while these terms have been defined by the IRS, they may not be applicable to your plan, as they are optional terms to be added by your provider. Before you make any withdrawals, it’s vital to talk with your provider to see if any of the above exceptions are applicable to your plan.
Also, “no 10% penalty” doesn’t always mean “no taxes.” Depending on the account type, you may still owe regular income taxes, and plan rules can vary. We can help you run the numbers and explore alternatives before you make anything official.
Sources
Can’t Find Your Old 401(k)? Check Out This New DOL Tool
IRS Declares Seven More ‘Safe Harbors’ for Early Withdrawals