How could a company withhold payment to the 401K plan for its employees? I could understand that if the company has an employer matching program, perhaps they could hold up that payment, but not the employee's contribution. It's their money!!
Seen this movie before, bought the t-shirt. It happens, believe me. As we've said, m1, the company that Flip bought, witheld medical plan payments in order to fund operations. Hundreds were stuck with large med bills. Yours truily included. I wouldn't know what's going on there, but if I were a betting man, and I'm not, I'd say that Flip wouldn't dare try the same thing in this post-enron era. But I've been wrong a couple of times before.