QUESTION
can a bankruptcy attorney pull fees from employee 401k plans if the company has gone bankrupt?
Asked on Aug 19th, 2011 on Bankruptcy - Georgia
More details to this question:
The company I worked for approximately 2 years ago has gone bankrupt. My 401k was still with them at the time of it going bankrupt. I can not get my 401k rolled over now because I am being told that everyone in the company has to fill out distribution paperwork and all the attorney fees accrued during this time it takes to happen is coming out of all of the plan assests, the employees 401k plans. Is this legal?
2 ANSWERS
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Charles J. Schneider, P.C.
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The person pulling fees from the 401K plan to administer is not a bankruptcy attorney per se but most likely a Trustee whose attorney fees must be approved by a Bankruptcy Judge to do so.
Answered on Aug 21st, 2011 at 10:37 AM
Glen Edward Ashman
A bankruptcy filing may affect a company's retirement plans. Without seeing the case filing there is no way to know how it affects yours. When you left the company you should have rolled your money into an IRA.
Answered on Aug 20th, 2011 at 3:01 PM