If the company you work for goes bankrupt, the future retirement income in your 401 retirement plan stays safe. The Employee Retirement Income Security Act (ERISA) of 1974 established guidelines for how money in 401(k) plans is maintained. To put it simply, your 401(k) plan account is not considered an asset of your employer. It is held in trust in a separate account for you. This means that your retirement savings money--both your contributions and your employer's matching funds--is not commingled with your company's money. Your company cannot access your plan money for any purpose related to maintaining its business.

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