401k and Bk

[RBirch]

What is the name of your state?south Carolina...If you are working for a company and they file Chapter 11 and reorganize by closing several stores, is it better to get your 401k rolled over to an IRA or could the bk cause problems with my individual account? I will no longer be employed as of 8-21-05

 

[Beth3]

After 8/21, you can do anything you want with your 401(k) monies. Chances are you don't need to because once the money is contributed to the Plan and placed with the investment advisor, your employer has no opportunity to get any of that money back. I'd likely roll the money over into an IRA however, simply because if the company does shut down, it will be simpler for you to have done so previously.

 

[RBirch]

401k and bk

Could the bk courts in liquidating to pay off company debts ever touch my 401k money...not that it would happen but could it happen?

 

[Beth3]

No, no, and no. That is the PARTICIPANT's money, including any past contributions that the employer made to the 401(k) Plan. No judge would ever order employees to pay their employer's creditors with their personal retirement savings.