Company borrowing against 401K?

[Rick01]

What is the name of your state? Pennsylvania
If a company contributes to a 401K, can they borrow against it for any reason? I've heard conflicting answers and I'm confused. Please shed some light on my dilemma. Thank You.What is the name of your state?

 

[cbg]

I'm not sure what you mean by, "borrow against it". Borrow against the 401k plan? the contributions made by the employees? The employer? For what use?

 

[Rick01]

I will attempt to clarify my statement:

If a company contributes money (lets say $100 per month) to my 401k plan, can they for any reason (such as bankruptcy, selling of business, etc.), 'borrow against' (by which I mean, take the money to pay bills, whatever) my 401K?

 

[cbg]

No, they can't.

 

[Beth3]

I will attempt to clarify my statement:

If a company contributes money (lets say $100 per month) to my 401k plan, can they for any reason (such as bankruptcy, selling of business, etc.), 'borrow against' (by which I mean, take the money to pay bills, whatever) my 401K?

That wouldn't be "borrowing against" the 401(k) - that'd be grand theft and a violation of federal ERISA and IRS regulations. The employer would be in deep doo-doo if they did that, as in jail time. If the employer contributions are optional under the terms of the Plan, they can stop making contributions but they cannot EVER take funds FROM the Plan after they've been deferred/contributed.