Is my 401k money safe during bankruptcy?

Is my 401k money safe during bankruptcy?

401k money is 100% protected, the court cannot touch your 401k.

It’s 100% protected unless you take it out of the 401k. If you withdraw the money out of the 401k and put it in your bank, it’s no longer protected. It’s something that the bankruptcy court can get their hands on if it’s not properly protected. And another major thing not to do prior to filing is don’t transfer any assets to family or friends prior to filing your case. A lot of people think, you know, they own real estate or they have cars, and they think “hey, before filing my case, I’m going to transfer that out of my name into my friend’s name or family’s name”. And if you do that, again, it’s something that you’re most people’s houses, most people’s cars are 100% protected, but as they start to try to transfer things prior to filing, it can make a protected asset all of a sudden become an unprotected asset and something you could lose in the bankruptcy court.