Final answer:
A company may not repossess funds meant for a qualified retirement plan for business purposes. These funds are earmarked for retirement savings and are protected to serve the employees' future financial stability.
Step-by-step explanation:
According to the IRS, a company may NOT repossess the funds for business purposes with respect to funds in a qualified retirement plan. Qualified retirement plans, such as 401(k)s and 403(b)s, allow employers to contribute a fixed amount to the worker's retirement account. These plans are designed to be tax-deferred and provide portability, allowing employees to take the plan with them if they change employers. Funds within these plans can be transferred to a new custodian, invested in various investment vehicles like mutual funds, and transferred to terminated employees if those funds are vested. However, the funds are meant to serve the purpose of retirement savings and cannot be used for the company's business expenditures.