If your clients have ever worked in the U.S., they might have a 401(k), which is an employer-sponsored defined contribution pension account. And if they’ve changed jobs a few times, they may have forgotten some accounts.
They’re not alone. Bloomberg reports that almost a million workers lose track of 401(k)-like plans each year. There is currently no central database, although in June 2016, Senator Elizabeth Warren co-sponsored a bill to create a searchable database of abandoned accounts.
In the meantime, clients can look through the U.S. Pension Benefit Guaranty Corp.’s searchable database, which only covers traditional pension plans. By 2018, reports Bloomberg, that database should also include “401(k)s and other defined-contribution plans that get shut down.” Read the full story here.
Once clients have found their U.S. retirement accounts, they might want to bring the funds to Canada. This story explains how to bring 401(k)s and IRAs to Canada properly.