This Is Uncomfortable Wait...where did my retirement money go?
Apr 2, 2026
Katy Milkman, behavioral scientist and Wharton professor who studies procrastination, and Geoffrey Sanzenbacher, retirement researcher from Boston College, dig into lost 401(k)s and why rollovers are rare. They explore how account fragmentation, small-balance rules, and institutional incentives hide retirement money. They also discuss why we avoid financial chores and practical hacks to get them done.
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Four Clear Options For Old 401(k) Balances
- You have four options for old 401(k) balances: leave it with the old employer (if >$1,000), roll to new employer, roll to an IRA, or cash out.
- Geoffrey advises rolling to the new employer as best, IRA second (higher fees), and avoiding cash-outs due to taxes and lost compound growth.
Small Accounts Get Purged By Plan Providers
- Firms dislike small leftover accounts and can automatically remove balances under $1,000 to clear their books, which can send checks or roll funds elsewhere.
- This practice explains why some people may discover missing small accounts later.
Job Mobility Disadvantages Lower Income Workers
- Lower-income and younger workers who change jobs most often are disproportionately harmed because job mobility increases chance of losing track of retirement balances.
- Geoffrey emphasizes job mobility plus fragmentation creates inequitable retirement outcomes.