Bankrupt Bosses Can't Touch 401(k)s

Money in a 401(k) is actually safer in the event of an employer bankruptcy than money in a company pension plan.

The money in a 401(k) must be held in a trust the employer can't touch, even if the business is having financial trouble. With a few minor exceptions, "there's no legal way for an employer to get its hands on your money after it has been sent off to the service provider," says Temple University business professor Jack VanDerhei, who also works with the Employee Benefit Research Institute.

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