What happens if a company goes under?

[Mama_Zappa]

@Washoe

Incredibly, if a company stops depositing contributions to a 401k plan, it freezes the funds. The individual participants cannot draw on them, despite the fact that it’s their money. If the company then dissolves, the entire sum of all contributions ever made and all accrued interest is returned to the company in a lump sum. Since I had severed the company’s only source of credit, there were no funds available to deposit. The company in question was owned by two black cocaine dealers from Oakland who had ties to Death Row Records, and according to one person I talked to, directly to Suge Knight himself. If that money had fallen into their hands, it would have promptly vanished. I convinced the morons who were administering the plan that they would be sued to within an inch of their lives if they were to let that happen. Amazingly, they heeded my admonishments.

::::boggle::::
You’re saying that if I’ve put aside, say, 10,000 a year for 10 years - a mix of company and my own contributions… then next month’s payroll, the employer doesn’t remit anything to the 401(k) company… the 100,000 is frozen, and the employer could be REWARDED, by being handed my 100,000??? And my retirement money is quite literally GIVEN AWAY by the brokerage firm entrusted to keep it safe??? :eek: :eek: :eek: :eek: :eek:

Of course, the concept of a couple of cocaine dealers having a 401(k) plan set up is a bit startling also :o .