 Quote:
|
Originally Posted by Martha
I was wondering if someone would ask.
The plan assets are in trust for the participant's benefit. If the plan trustee ended up in bankruptcy or otherwise was insolvent, those assets would not be available to the trustee's creditors. Now if the trustee stole plan assets then the assets may be gone. It is possible that a fidelity bond would reimburse you for a trustee's bad acts. Trustees stealing plan assets has got to be rare rare rare.
|
It's very rare
The only way it usually happens is if the trustee somehow pilfers the funds before they make it to the plan. This is a VERY rare event because every plan I have ever worked on has at least a few employees who check their contributions several times a day. The chances of them not noticing missing contributions is beyond small.
For a trustee to actually get money out of the plan (and not have the check sent to the bene or new custodian) would be near impossible.
|