401k plans etc

*** Disclaimer ***

I am not a lawyer and this is not legal advice nor is it specific financial advice.

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I have noticed a number of disturbing comments regarding the financial havoc wrought by a franchise gone awry.

On of the more puzzling comments I have heard of late is that the zee has lost their 401K. Given the way these posts are written I suspect they do no tmean the very modern Individual 401K plans.

This leads me to believe that somehow zees are losing their 401K plans.

I do not understand this. Normally a 401k plan is designated as a "qualified retirement plan" and is relatively immune to creditors. Additionally some states even attach protections to IRA and other individual retirement accounts.

So it is a bit of a puzzle to me, how so many claim they have lost their 401K plan. Because, as I stated, normally they are relatively immune from creditors.

In fact this is one very, very good reason not to roll a 401K plan over into an IRA when you leave your employer. Normally the creditor protection of a 401K plan is superior to that afforded by an IRA.

So I am left wondering what is the mechanism that is being used to tap into the zees 401K plan. Are the zors pushing thee issue and are the zees complying with liquidation?

Corrections by our legal eagles are much appreciated.

FuwaFuwaUsagi