A 401(k) is a retirement savings plan provided by employers, allowing employees to contribute a portion of their salary through automatic paycheck deductions. Employers may match these contributions up to limits set by the IRS. For 2020/2021, these limits were $19,500 for employees under 50 and $26,000 for those 50 and older, or up to 100% of the employee's wages, whichever is greater. For example, an employer might contribute $0.40 for every dollar the employee invests.

Contributions are tax-deferred, meaning they are not taxed until withdrawn in retirement. Employees can choose from various investment options, such as stocks, bonds, mutual funds, or employer stock. Withdrawals are taxed at the ordinary income rate, while Roth 401(k) withdrawals may be tax-free under certain conditions.

If you’ve left a 401(k) with a former employer, here are potential places to look:

Old Employer's Records
Contact your former employer’s HR department to locate your 401(k). You’ll likely need your Social Security number and employment dates.

A New 401(k) Account
Sometimes, funds are automatically transferred to a new plan by the administrator.

Forced Transfer IRAs
If your account balance was below $5,000, it might have been moved to an IRA opened in your name at a bank or financial institution.

State Unclaimed Property Division
If the employer terminated the plan, funds might have been transferred to the state’s unclaimed property fund.

Cashed-Out Balance
In some cases, funds may have been distributed as cash. However, this is typically subject to taxes and penalties.

Services like Meetbeagle.com can help track old 401(k) accounts, uncover hidden fees, and assist in rolling over funds to better retirement accounts.

401(k) plans come with fees that typically range between 0.5% and 2% of the assets’ value. These fees fall into three main categories, as defined by the U.S. Department of Labor:

Investment Fees
Charged as a percentage of assets, these fees cover investment management services aimed at maximizing returns.

Administration Fees
These cover operational costs such as recordkeeping, legal services, and accounting. They may be flat fees or based on a percentage of managed assets.

Individual Service Fees
One-time fees for specific actions, such as processing loans, fund distributions, or financial advisory services.

A 401(k) rollover involves transferring funds from one retirement account to another. This is often done when switching jobs, with funds moved to a new employer’s 401(k) plan or an Individual Retirement Account (IRA). IRAs provide broader investment options, including stocks, bonds, and real estate investment trusts (REITs).

Types of Rollovers:
Direct Rollover
Funds are transferred directly from the 401(k) to the new account, avoiding any tax withholding.

Indirect Rollover
The account holder receives a check, which must be deposited into a new retirement account within 60 days. Note that 20% of the balance may be withheld for taxes, but this must also be deposited to avoid penalties. For instance, if the balance is $15,000 and you receive a $12,000 check (after $3,000 tax withholding), you must deposit the full $15,000 into the new account to qualify for a tax refund on the withheld amount.