Here's What Happens to Your 401(k) After a Company Merger or Acquisition

Employees are often caught by surprise when their company changes hands. How your company is sold (stock vs. asset purchase) could steer the future of your retirement savings plan.

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Corporate mergers and acquisitions can be stressful. When employees hear that their company is part of such a deal, they instinctively worry about their jobs. Even with reassurances that there’s no need to worry about layoffs anytime soon, employees should expect changes in their benefit plans, particularly their 401(k)s or other retirement savings plans.

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Keith H. Clark Jr.
Managing Partner, DWC - The 401k Experts

Keith Clark is co-founder and managing partner of DWC - The 401k Experts, founded in 1999. He is the author of "The Defined Contribution Handbook" and was named one of the top five consultants in "Pension Management Magazine."

Clark is also an adjunct professor at the University of Minnesota's Carlson School of Management.