__ Consider rabbi trust and other protection vehicles. See Rabbi Trusts for what is called "change of heart protection" - but note that a rabbi trust assets must remain subject to claims of the employer's creditors (and consequently do not provide enhanced bankruptcy protection).
The assets of 401(k) plans and other tax-qualified retirement plans are generally exempt from the claims of an employer's creditors, and are therefore insulated from an employer's bankruptcy.
PRECAUTIONS TO CONSIDER: (1) __ watch out for the timely deposit of plan contributions and for the proper monitoring of plan investments; (2) __ study your investment diversification, especially if your risks from employer stock; __ seek professional advice before selecting payout form from 401(k) and other pension plans.
Welfare Benefits - from Health to Life Insurance
These plans generally involve unfunded, unvested benefits that generally result in unsecured claims that may disappear in an employer bankruptcy.
Special provisions in the Bankruptcy Code provide mechanisms for the possible protection of retiree welfare benefits.
Personal Liability Risks
Income Tax Withholding: there are civil and criminal sanctions for those who do not pay required withholding and employment taxes. In times of employer distress, business owners and executives are sometimes tempted to divert funds, in the hope of paying these taxes when cash-flow permits. Beware of this disaster -and take action if you are aware of someone doing it (there is potential personal liability if a fiduciary knows of a violation and fails to take corrective action).