Millions of dollars in retirement savings become unclaimed property each year, according to a new Government Accountability Office (GAO) report (https://bit.ly/2V6uotr). It says that federal action is needed to clarify the tax treatment of unclaimed 401(k) plans and individual retirement accounts transferred to states. According to the GAO, the IRS and Labor Dept. have issued guidance on making such transfers to states. But the IRS hasn’t “ensured” that the retirement savings owners claim from states can be rolled over into other tax-deferred retirement accounts.
