How to Locate and Claim Forgotten Retirement Accounts

It’s easy for retirement savings accounts to become lost or forgotten, especially when life changes occur, like switching jobs or managing the complexities of aging. As of July 2025, a staggering 31.9 million 401(k) accounts have reportedly been neglected or abandoned, with an average balance of $66,691 per account. But 401(k)s aren’t the only type of retirement savings that can slip through the cracks.

The Issue of Forgotten Retirement Accounts

Many individuals may stumble upon a long-forgotten retirement account after the passing of a loved one. For example, imagine discovering your deceased father’s Individual Retirement Account (IRA), which had $30,000 when he died. Now, 30 years later, you may be wondering if you can still access that money and if the amount has changed.

Understanding Beneficiary Designations

Claiming funds from a forgotten IRA depends largely on the account’s beneficiary designations and its current status. Here are the two main categories:

• Designated Beneficiaries: Individuals named directly on the account, such as spouses, children, or friends.
• Non-Designated Beneficiaries: Entities such as estates, trusts, or charities.

Rights of Beneficiaries

If a surviving spouse is the designated beneficiary, they often have the most options. They can roll the funds into their own IRA and delay withdrawals until they reach the required minimum distribution (RMD) age. According to IRS guidelines, many plans necessitate that a spouse is listed as the primary beneficiary.

On the other hand, if no beneficiary is named, the IRA generally becomes part of the deceased’s estate. In this case, distribution must conform to the will or state intestacy laws, with the executor responsible for following IRS rules for non-spouse beneficiaries.

The SECURE Act and Distribution Rules

Non-spouse beneficiaries are usually subject to the 10-year rule under the SECURE Act, requiring that the account be fully emptied within ten years of the original owner’s death. If the account goes to a trust or is part of the estate, the timeline can be even shorter.

For example, if your father’s traditional IRA was established before the creation of Roth IRAs in 1997, mandatory withdrawals (RMDs) would have begun the year after his death. With time, these withdrawals could deplete a modest balance. If your mother inherited the IRA and rolled it into her own, she would need to take RMDs starting at age 70 ½; by now, that account could be empty.

Steps to Locate a Forgotten Retirement Account

Finding an inherited IRA is rare, especially after a significant amount of time has passed. However, if you suspect there might be assets still available, consider taking the following six steps:

1. Identify the Financial Institution

Older accounts often generated paper statements. If your parents kept historical paperwork, bank statements, or tax records, these documents may provide hints about where the account was held. If the original institution has merged or closed, you can trace the account to its successor.

2. Determine the Original Beneficiary

Understand who was named as the beneficiary. If you weren’t listed but are an heir, you may still have a claim if the account reverted to the estate.

3. Check Probate Records

If the account passed through the estate, public records might reflect its distribution.

4. Contact the Custodian

Retirement accounts are managed by custodial institutions. By providing the deceased’s name, Social Security number, and date of death, the institution can inform you if the account was closed or transferred.

5. Seek Professional Guidance

Consulting a tax professional or estate attorney can help navigate complex distribution rules, particularly if the account hasn’t been handled correctly.

6. Investigate Dormant Assets

Sometimes, beneficiaries are not notified, leaving unclaimed assets in limbo. Follow through by confirming the institution and reviewing probate records.

Conclusion

Although finding a decades-old inherited IRA is unlikely, the potential for money still being available makes it worth the effort. Even if the account has been depleted, tracing its history allows for peace of mind.

If you believe there may be forgotten accounts in your family history, follow the steps outlined to investigate. For financial peace of mind, it’s essential to close the loop on your financial history.

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Note: This article provides informational content and should not be considered financial advice. For more details, refer to vetted sources and credible reporting.