US faces $2.1 trillion in stranded 401(k) retirement accounts

A recent analysis finds that roughly 31.9 million 401(k) accounts in the United States have been left without an active employer, representing about $2.1 trillion in assets. The number of stranded accounts has risen nearly 30 % since 2023, according to Department of Labor Form 5500 data compiled by Capitalize. Financial planners warn that these dormant accounts can accrue high administrative fees, with charges shifting to the participant’s balance and potentially eroding savings over time. In addition, many of the accounts lack accurate beneficiary designations, exposing heirs to shortened payout periods or even state seizure under unclaimed‑property laws.

Parallel data from Empower’s Personal Dashboard shows average 401(k) balances climbing to $351,242 and overall retirement balances to $561,133 as of June 30 2026, marking double‑digit year‑over‑year growth. More respondents are reaching the million‑dollar retirement milestone, especially in their 50s, while still carrying sizeable consumer debt. The trends highlight both growing wealth accumulation and the persistent risk of overlooked retirement assets.