What to do about my employer’s bankruptcy and missing 401K money?

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What to do about my employer’s bankruptcy and missing 401K money?

My employer just filed Chapter 13 bankruptcy. I have learned that they have not deposited any of the money I designated as my contribution to my 401K for the last 9 months, nor have they deposited their match to the 401K. Are they protected under Chapter 13 or is it a criminal case for them to have stolen my wages and not deposited them into my 401K?

Asked on September 19, 2012 under Employment Labor Law, Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Under federal laws in this country an employer cannot discharge obligations owed to an employee such as 401 k contributions debited but not deposited in his or her account. I would contact an employment lawyer about your situation as well as make a complaint with your local department of labor about you not getting your retirement funds deposited into your retirement account.

I also suggest that you consult with a bankruptcy attorney about the need to make a claim to the bankruptcy court as to your retirement funds. From what you have described, the taking of your retirement money and not depositing into you retirement account may be deemed a criminal act. You might also wish to consult with law enforcement about your situation.

From what you have written, your employer has a problem.


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