401k and 403b Plans

Can employee stock options be converted to a 401K without bad faith before filing a Chapter 7 Bankruptcy?

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2007-01-28 18:53:54
2007-01-28 18:53:54

generally no. the only type of money that can be put into a 401k are payroll deductions, roll ins from other 401k's, traditional or Rollover IRA's and pensions. If the stock options are in one of these plans, call your plans service center to get your plans rules and procedures. It is rare for stock options to be in one of these plans. Also stock options have no real value until you exercise them (buy the stock).

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A Chapter 7 bankruptcy will remain on the credit report for the requrired ten (10) years. There are not options for having it expunged sooner.


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An excellent resource for learning about employee stock options is through The National Center for Employee Ownership at nceo.org. This is a nonprofit organization that provides objective information relating to all aspects of employee stock options.


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Free stock options are often in the form of employee stock options, where an employee is offered stock in the company as a form of non-monetary compensation.


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Judith S. Ruud has written: 'Accounting for employee stock options' -- subject(s): Accounting, Employee stock options


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The Shop Rite employee W2 forms can be found online under your employee log-in options. You must have an employee log-in and password for access.


If you know that you willing to go beyond the limit on building your own finance with employee stock options you don't have nothing to worry about. you'lll know when you get started



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