How Old 401K’s Turn Into Lost Cash
When you search for lost cash, you might find an old 401K account that has grown much larger than when you last saw it. That’s what’s happening more and more as individuals conduct searches for money that somehow become lost and then ended up in State or Federal Treasury accounts across the country. A person typically starts a 401K account because it is offered by their employer. As they continue to work, they will add to their 401K account and oftentimes the employer will match their contributions to create an even bigger sum for the future. The idea, of course, is that the person will be able to retire on the healthy sum that results from years of working for the same employer. What happens, then, when the person changes jobs? What happens to the money in that 401K? As we’ve mentioned, many are finding this lost cash years later in 401K accounts that have long been abandoned.
What Happens to 401K Lost Cash?
401K accounts are designed to grow over time, thanks to interest. The longer the money remains in the account, the more interest will be added. This means that if you abandoned the account years ago, by the time you find it during a search for lost cash that money might be ten times the amount.
If you had $1000 in the account ten years ago, you might find that you have $100,000 in lost cash during a search for the same. Is that possible? While $100,000 may be a little much to hope for, anything can happen.
The fact is, there are billions of dollars in lost cash all throughout the country and much of that is due to abandoned accounts. This means abandoned bank accounts, stock trade accounts and, as we’ve mentioned, 401K accounts.
Think back through the years and see if you can remember any 401K accounts that you may have held and then lost track of. Even if you can’t think of an instance where you might have lost cash coming to you, try your hand at a search for lost cash anyway. It only takes a moment and you might just hit the 401K jackpot.