Lost and Found: Retirement Accounts

Jan 21, 2026

Picture the lost and found at the gym: abandoned water bottles, forgotten sweatshirts, earpods….While it’s not a stretch to conjure a few wadded up bills in the pockets of cast off layers, it is hard to believe that anyone would leave a bag of money behind, right? But that’s exactly what many of us have done with retirement accounts: left money here and there with job changes. Lost retirement accounts are a problem that has been adding up. Read on for the scoop—-and become part of the solution.

Inaccurate Data, Confused Participants…

Whether forgotten by retirement plan participants, or abandoned when a business closes, merges or experiences other disruptions (including the death of the owner), funds tucked into retirement accounts and neglected have been adding up, as Kelsey Mayo at the National Association of Plan Advisors (NAPA) points out: “Some estimates say there are more than 24 million “orphaned” retirement accounts in the U.S., totaling well over $1 trillion. That’s a lot of meals, mortgages, and dream vacations left on the table!”As strategic wealth advisors Depaolo & May explain, funds languishing in orphaned accounts present a variety of problems for anyone hoping to retire someday:

They may be out of sight, but they shouldn’t be out of mind. In fact, keeping retirement savings in a former employer’s plan often means:

Higher administrative costs that quietly erode your balance
Limited, outdated investment options
Zero coordination with the rest of your financial strategy

Forgotten retirement savings are not only a problem for the individuals who are losing out on their hard earned money. Mayo underscores that forgotten retirement savings present a big problem for plan sponsors and other pension professionals, and urges active participation in lost and found efforts:

For plan professionals — TPAs, advisors, sponsors, and everyone in between — this isn’t just a participant problem. It’s a tangled knot of compliance headaches, administrative burdens, and, sometimes, frustrated phone calls from former employees….So, what’s the search and rescue plan? Enter the Department of Labor’s new “Retirement Savings Lost and Found” platform, which officially launched this year. The goal here is simple: reconnecting people with their lost retirement money.Here’s how it works: users can search the DOL’s database for any retirement accounts they may have lost track of — populated in part by that 8955-SSA data that you’ve been submitting.

Though Mayo acknowledges that the quality of SSA data is often questionable, she reminds us that the DOL’s lost and found platform is “live and ready to use,” and shares this advice for retirement plan sponsors:

Plan sponsors can voluntarily report data, but they aren’t required to….
Consider when voluntary reporting might help clarify data or bridge gaps for missing accounts….
If you’re an employer (or working with one) that knows they have questionable SSA data, you may want to consider proactive reporting to avoid yet another government agency suggesting to a former participant you have a benefit for them that doesn’t exist…..
Be prepared for inquiries from former participants…..
Have a plan to communicate with former participants who come knocking.
Going Forward:…ensure 8955-SSA data is accurate and correctly indicate when participants take distributions to avoid false positives in the SSA data….

Most importantly, stay engaged and share your experiences — your feedback can help make these tools work better for everyone.

Access the Department of Labor’s official information here: Retirement Savings Lost and Found Database. In the spirit of “an ounce of prevention…,” it’s also wise for retirement plan sponsors to curtail “missing participant” problems, via attention to directives from the Employee Benefits Security Administration (EBSA): “Maintain complete and accurate census information; Communicate with participants and beneficiaries about their benefit eligibility; and, Implement effective policies and procedures to locate missing participants and beneficiaries.” Brush up on EBSA’s specific guidance on missing participants here: Best Practices; Compliance Assistance; and, Field Assistance Bulletin.

Another wise practice for plan sponsors is updating protections for themselves. Although it’s common to outsource administrative services to third parties, sponsors remain responsible (and personally liable) for the plan: fiduciary liabilities can be reduced, but never eliminated.

Unforeseen challenges arise all the time for plan sponsors, and seemingly small oversights trigger costly ERISA regulatory action and litigation. In fact, the average ERISA claim costs ordinary businesses over $1.2 million in legal fees. That’s why Colonial Surety makes protection affordable for plan sponsors and their businesses. Armed with our Fiduciary Liability coverage, for a few dollars a day, you’ll have defense costs and penalty limits up to $1,000,000, if faced with alleged or actual breaches of duty in connection with the employee retirement plan. Cyber liability coverage is included at no extra cost, providing additional protection–for the plan and company–against regulatory actions related to data and privacy, as well as expert response services.

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Protection for Retirement Plan Sponsors

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