If a company files chapter 11 what can become of it's 401k plan? which, is currently managed by a large financial institution. Is it safe?

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Anonymous

ANSWERS: 3

AssetAllocator

It is safe. Part of the requirements for a safe harbor plan is the assets in the 401k are seperate from company assets or liabilities. Any investment in company stock would likely be worthless, but investments in mutual funds are fine.

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notquitered

Along with the factual response from the other person, a 401(k) plan must also be secured by a bond.

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Mr C

It is protected under Federal Law.

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