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    felix martinez's Avatar
    felix martinez Posts: 4, Reputation: 1
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    #1

    Jan 24, 2009, 08:48 AM
    401k Bankruptcy
    If a company goes bankrupt, is a fully vested 401k account in jeopardy?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jan 24, 2009, 11:47 AM

    Depends on how the money was invested, Normally the money is piad into a investment company and invested in funds or stock.

    But there are possible to have loss in some cases
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Jan 24, 2009, 04:40 PM
    Quote Originally Posted by felix martinez View Post
    If a company goes bankrupt, is a fully vested 401k account in jeopardy?
    No - monies invested in a 401(k) are not part of your employer's assets, so your 401(k) should be in jeopardy. Of course if you invested in the company stock within your 401(k) then the value of that portion of your investment may be wiped out.
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