thank you for mentioning bankruptcy...

 

Yes, the federal bankruptcy code was amended in 2005 to ensure that bankruptcy protection is extended for 401(k)s in all states for up to one million dollars. In a Chapter 7 bankruptcy, the filer's non-exempt assets are pooled together to form the bankruptcy estate. However, even under a Chapter 7 liquidation the debtor's 401(k) will be protected for up to $1,000,000 in value.