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Financial Planning / Foolish 401(k)s

URL:  http://boards.fool.com/i-still-think-you-are-asking-the-wrong-question-30716892.aspx

Subject:  Re: how secure is the money in a 401k? Date:  6/3/2013  4:33 PM
Author:  mjolah Number:  25043 of 25247

I still think you are asking the wrong question. Between 1 & 2 is the TRUST with a TRUSTEE. In reality, you "own" nothing at Fidelity. The trust is the legal owner. You are a beneficiary of the trust which is the owner of the assets held at Fidelity. The trust, as investor, is the protected party under the SIPC and private insurance that Fidelity purchases to cover it's customers - and you benefit from that.

In addition to being the beneficiary of the protections Fidelity has in place, you have the protections of the trust - which is separate from your employer (although the trustee may be an individual who you think of as your employer - it is vastly different in a legal sense).
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