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Bankruptcy and Safe Harbor Contributions


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Guest gopher2378
Posted

Small employer with 4 employees (1 owner and 3 employees) who were all employed on 12/31/2008. It's time to file the 2008 Form 5500 and make the 2008 3% safe harbor contributions, but the company is out of business and there are no corporate assets. The owner has filed personal Chapter 7 bankruptcy. Do the participants become creditors for their 2008 safe harbor contribution? Do they have to file something with the bankruptcy court?

Posted

Technically the person who should be filing a claim is the plan trustee. Of course, if the trustee is the business owner it get sticky.

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