2007-02-05 09:35:16 · 5 answers · asked by empirestainless 1 in Business & Finance ➔ Personal Finance
I'm assuming you meant your employer went bankrupt. If that's the case then the TRUSTEE (typically the owner of the company is the trustee or he/she may hire a company) should be able to help you get a distribution.
If you have online access to your accounts though, there is probably a mechanism for you to fill out the paperwork online to request a distribution/rollover.
A 401k is basically done on a cash basis and the money is also held in trust outside the assets of the company. If it wasn't and creditors attached the funds then you have the basis for an ERISA lawsuit and you'll want an attorney. Good ERISA attorneys are expensive but well worth it.
But..you should check every avenue available to you. If you are unsure about who the trustee is go to www.freeerisa.com and do a TRUST EIN finder to get the EIN number of your 401k plan. Then do a Form 5500 search to get a copy of the Form 5500. They may show you a copy of the schedule P. That will have the trustee information. Also your Summary Plan Description should have that information.
If you get nowhere on your search, contact the Department of Labor and they will help you out. good luck
2007-02-05 11:43:34 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
There are two companies involved. If the company you work for goes "belly up," you will lose the value of your investment you have only in their stock. The 401k is controlled by another company, an asset management, a brokerage, or a mutual fund company. Even if it is a mom & pop type of asset management company, in order to be in business, they must have something around $20 million (for each account) in insurance against bk or fraud. If it is a mom & pop type company that is handling your 401k, make sure your company's administration did their due diligence and made sure "mom & pop" are insured.
2007-02-05 17:46:47 · answer #2 · answered by gosh137 6 · 0⤊ 0⤋
You've hit upon one of the advantages of self directed retirement accounts like 401ks. It's your account, it's your money, if your company goes bankrupt it has no effect. You will be able to roll the funds from your old account into a new account with your new employer.
2007-02-05 17:42:46 · answer #3 · answered by edoubleyou 4 · 0⤊ 0⤋
If the company bankrupt then what ever is in the bank for you then that is all you will have until you find another job who offers this plan and you will let them pick up where the other company left off.
2007-02-05 17:41:52 · answer #4 · answered by maria fkun 4 · 0⤊ 0⤋
The investment firm has the money, not the bankrupt company.
Simply call the investment firm (Fidelity, Vanguard, T. Rowe Price, etc.) and tell them you want to roll it over to an IRA (or ask what all of your options are).
Take advice from the Enron fiasco: if you have a percentage of your money allocated to company stock, change it.
2007-02-05 17:40:26 · answer #5 · answered by Anonymous · 0⤊ 0⤋