Legal Question in Banking Law in Massachusetts

Profit Sharing

I have a profit sharing plan at work....It is %100 funded by the company's profits....If my employer happened to go out of buisness is this money protected...Also if I wanted to take some money out of it can the company stop me from doing so........This has nothing to do with my 4o1-k plan..


Asked on 4/07/07, 11:39 pm

1 Answer from Attorneys

Re: Profit Sharing

401-K assets are protected and separate from a Company's assets as long as they are not overfunded by the company and then only to the extent overfunded. Over funding almost never occurs.

As to your ability to make withdrawals from your 401-k are dictated by certain IRS rules and the terms of the plan.

If you have additional questions, please call me.

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Answered on 4/08/07, 1:40 pm


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