Bankruptcy
If a company that sponsors a 401(k) files for Bankruptcy, do the participants have to file a claim for their un-invested contributions?
If a company that sponsors a 401(k) files for Bankruptcy, do the participants have to file a claim for their un-invested contributions?
Permalink Submitted by Alan - IRA critic on Tue, 2016-05-10 20:27
Deferrals from your paycheck cannot be excused in bankruptcy if the plan sponsor failed to make the contributions and then filed for bankruptcy. Participants can file a claim with the Dept of Labor.