People across country are leaving billions in retirement from old jobs. What you need to know

ATLANTA — Americans are leaving billions in retirement accounts at old employers.

Channel 2 consumer adviser Clark Howard said it’s up to you to find that money and put it to work for your wallet.

Howard hit the Beltline in Atlanta to ask people if they have old 401(k)s and if they know what to do with them.

Deon Glenn who lives in midtown told Howard he has one 401(k) from a previous job.

“So, the first one, have you gone back and gotten that money or is it still sitting there at that old employer?” Howard asked.

“It’s still there, I didn’t go get it,” Glenn said.

He is not alone. Millions of Americans leave 401(k) accounts behind when they switch jobs.

Wes Moss, a certified financial adviser, said it’s easy for people to lose track.

“This is real money,” Moss said.

He told Howard the best thing to do is take that money with you.

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“Open up an individual retirement account. You can do that at Schwab, Fidelity, Vanguard and really make that the destination to roll over all of those past 401(k)s into one account,” he said.

Moss said the best way to find old accounts is to search your inbox.

“Find anything from your company or 401(k) literally in your email search, that, I think is the best way to do it,” Moss said.

If that doesn’t work, try the Department of Labor’s abandoned plan search or the National Registry of Unclaimed Retirement Benefits.

Once you locate your money, Howard said the worst thing to do is make a withdrawal.

Glenn told Howard he was tempted to take his money out.

“I definitely wanted to touch it but again, they had programs showing you if you took it out, what it looks like and how the curve would drop. So that deterred me,” he said.

Channel 2 Action News ran the numbers. If an employee making $60,000 per year, withdraws $35,000 from their 401(k), the actual amount received after taxes and fees will be just under $24,000.

That same money left invested will grow to nearly $250,000.

You can also move that money into your new plan or an existing Roth. Something Sydney Bennett, a graduate student from Chicago was elated to find out.

“That’s the best news,” Bennett said.

Howard said the best way to make sure you are on track for retirement is to save a dime of every dollar you make.

“It’s up to you and me to save money for our future. Nobody else is going to take care of us. We have got to take care of ourselves,” Howard said.

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