Risk
Unlike defined benefit ERISA plans or banking institution savings accounts, there is no government insurance for assets held in 401(k) accounts. Plans of sponsors experiencing financial difficulties, sometimes have funding problems. Fortunately, the bankruptcy laws give a high priority to sponsor funding liability. In moving between jobs, this should be a consideration by a plan participant in whether to leave assets in the old plan or roll over the assets to a new employer plan.
Read more about this topic: 401(k)
Famous quotes containing the word risk:
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—Herman Melville (1819–1891)
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—John Paxton (1911–1985)
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—Thomas Wentworth Higginson (1823–1911)