Print

Finance >> Browse Articles >> Retirement

Rate

Meltdown 101: How Layoffs Affect Retirement Plans

Meltdown 101: How Layoffs Affect Retirement Plans

CANDICE CHOI, AP Personal Finance Writer

It’s one of a heap of financial worries that come with a layoff: What happens to your company-sponsored retirement plan?

The answer depends on how long you worked for the company, the amount you saved up and whether the money’s in a 401(k) or a pension plan.

For the most part, federal regulations protect retirement savings, even if a company goes belly up — which may come as a relief to many given today’s shaky economic landscape. Since the start of the recession last December, the number of unemployed people in the country has increased by 2.7 million, to 10.3 million.

In case you’re worried about your job security, here are some questions and answers about your company-sponsored retirement account.

Q: Do I get retirement benefits if I’ve only been with the company a short time?

Q: What happens to the money in my 401(k) or pension after I’m laid off?

Q: Should I take a lump sum or keep it in a retirement account?

Q: What happens to my pension if my company goes under?

Q: What happens to my 401(k) if my company goes under?


Recent Activity

Img_0184_max30
prempokhrel18 received the quiz result of "Airport Firefighter", about 16 hours ago.
Img_0184_max30
prempokhrel18 gave a thumbs up to The Article "The Age Factor", about 17 hours ago.
1511798_464215850344958_1566670560_n_max30
265mvfd reviewed the product: "Firefighter Rescue And Survival", 1 day ago.
1511798_464215850344958_1566670560_n_max30
265mvfd joined the group "Patch Collecting", 1 day ago.
1511798_464215850344958_1566670560_n_max30
265mvfd joined the group "Firefighters that dip Copenhagen", 1 day ago.