I’m 45 and I just found out about a 20-year-old 401(k) account with $25,000 in it. Where should I put the money?

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Can you ideate forgetting astir tens of thousands of dollars of invested funds? While this whitethorn look similar thing lone the super-rich would do, the world is that moving Americans are accidentally abandoning their hard-earned wealth each day.

That abandoned wealth exists successful portion successful the signifier of 31.9 cardinal forgotten 401(k) accounts, which Capitalize (1) reports held a combined $2.1 trillion successful assets successful 2025.

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You tin way down these assets utilizing services similar the U.S. Department of Labor’s Retirement Savings Lost and Found Database (2) oregon by contacting erstwhile employers. But accidental you bash way down an abandoned account: What’s the adjacent step?

Let’s imagine, for example, that Juan, 45, worked astatine a car dealership successful his 20s and contributed wealth to his 401(k). He near the occupation astatine 25, wholly forgot astir it, and precocious received a missive from the program head informing that the institution volition commencement charging a monthly non-employee attraction interest (3) if helium doesn’t transportation the account.

Now, acknowledgment to appreciation, Juan has $25,000. He has to determine what to bash with the money. What are his options?

Here are a fewer imaginable things helium tin do.

Leave the wealth wherever it is

Juan tin take to permission the wealth wherever it is if helium wants to. But this usually would beryllium a atrocious idea, since he’s been warned he’ll present beryllium fees.

Research from PensionBee (3) revealed that the monthly attraction fees you often wage erstwhile you wantonness an aged 401(k) relationship tin adhd up dramatically due to the fact that of mislaid compounded concern returns.

In fact, according to their analysis, if you enactment for 33 years, alteration jobs each 3 years, gain 5% returns minus mean 401(k) fees, and the fees for keeping the aged relationship full conscionable $4.55 per month, the semipermanent costs of those added fees tin full astir $18,000 implicit time, including mislaid compounding.

There’s nary crushed for Juan to suffer wealth to an other medication interest each azygous period erstwhile determination are other, amended solutions.

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