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>unlikely you'll ever collect from that 401k friend! Like WillPostForFood, I'm baffled about where you're even getting this idea. The 401k is their money. Ri
by froindt 7y ago
>unlikely you'll ever collect from that 401k friend!
Like WillPostForFood, I'm baffled about where you're even getting this idea.
The 401k is their money. Right now they could withdraw all the money. If their employer goes bankrupt, the 401k balance didn't change at all. The only part that could potentially go away would be unvested company contributions (I'm not sure on this - it's all I can think of though).
If we were talking about a pension, Social Security, or a 457b deferred compensation plan - I get it. There's uncertainty. Pensions get underfunded routinely, private equity shenanigans occur etc. Social Security will likely see big changes in the next 40 years. In the case of the 457b plans, it's not your money until you leave the employer and start withdrawing money.
Please clarify your statement if you have something productive to add.
- martin1b 7y agoI think he's inferring to the government being able to get to it in the future. Whether it be by future legislation of extended early withdrawal penalties, or new tax laws. Yes, it is your money but is still subject to federal and state laws. It's different than a bank account.
- palebluedot 7y agoNot really that much different with respect to their exposure to future laws; your bank account balance is subject to federal and state laws as well. Yes, future laws could affect your 401(k) balance, but the same holds true for your bank account balance (e.g., wealth taxes, etc..). But what else can you do, really? Best to put your savings into the most cost effective / tax efficient vehicle that is currently available.