Next: My company is going out of business. What happens to my retirement savings account?
What happens to my 401(k) if declare bankuptcy
In most cases, your 401(k) money remains protected if you declare bankruptcy.
401(k) Must be qualified
Your 401(k) Plan Must be a “Qualified”
The Bankruptcy Code states that retirement income and retirement plans are exempt from the bankruptcy estate. To be considered exempt, your 401(k) plan must be a “qualified” plan that meets the requirements of the IRS.