topic Re: 401K/Company filing BK in SmorgasBoard

401K/Company filing BK

Anonymous — Fri, 16 May 2008 14:14:10 GMT

If the company that I work for files BK what happens to my 401K? Just wondering....

Re: 401K/Company filing BK

Anonymous — Fri, 16 May 2008 14:24:27 GMT

your 401(k) goes with you - hope you didn't invest 100% stock in your company.

Re: 401K/Company filing BK

Anonymous — Fri, 16 May 2008 14:29:32 GMT

Make sure the money you've had witheld for your 401k actually got deposited into it!

The office manager at one place I worked wasn't doing that (nor was she paying the company taxes). She was cooking the books, and one of the co-owners may have been in on it.

They can get into some very serious legal trouble for taking your money...

-MsMS

Re: 401K/Company filing BK

llecs — Fri, 16 May 2008 18:37:06 GMT

I manage the 401(k) for our company. A few months after we signed up, the 3rd party that administers everything called us and insisted to see our insurance policy. I didn't know what she was talking about, but come to learn that every employer who offers a 401(k) must purchase insurance to cover BKs, fraud, etc. I believe it falls under an ERISA bond and it starts, I think at $50k and goes from there.

By fed law, your company must have that bond in place to cover any "misplaced" distributions on your end.

Message Edited by llecs on 05-16-2008 02:37 PM