Boris <nospam@nospam.invalid> wrote:
I want to purchase an umbrella policy to protect our assests
against personality liability claims. I want to protect real
estate and investments.
We are retired.
If a judgement was made against me, would my (our) 401(k)s be at
risk? Are social security payments at risk?
We have other non-401(k) investments (cash and muni bonds) that I
assume would be at risk, as real estate would be at risk, too.
This is really more of a question for a bankruptcy lawyer than a tax professional. The answer to your question is, maybe. Each state has
its own rules on what is or is not exempt from creditors. In some
states retirement funds are exempt. That may not be the rule in
every state. You need to talk to someone familiar with insolvency
law in your state.
"Stuart O. Bronstein" <spamtrap@lexregia.com> wrote in news:XnsAD0D6C37D565Espamtraplexregiacom@130.133.4.11:
Boris <nospam@nospam.invalid> wrote:
I want to purchase an umbrella policy to protect our assests
against personality liability claims. I want to protect real
estate and investments.
We are retired.
If a judgement was made against me, would my (our) 401(k)s be at
risk? Are social security payments at risk?
We have other non-401(k) investments (cash and muni bonds) that I
assume would be at risk, as real estate would be at risk, too.
This is really more of a question for a bankruptcy lawyer than a tax
professional. The answer to your question is, maybe. Each state has
its own rules on what is or is not exempt from creditors. In some
states retirement funds are exempt. That may not be the rule in
every state. You need to talk to someone familiar with insolvency
law in your state.
Thanks, Stu.
Yes, it is a question for an insolvency lawyer, with whom I plan to pursue.
Hi,
I want to purchase an umbrella policy to protect our assests against personality liability claims. I want to protect real estate and investments.
We are retired.
If a judgement was made against me, would my (our) 401(k)s be at risk? Are social security payments at risk?
We have other non-401(k) investments (cash and muni bonds) that I assume would be at risk, as real estate would be at risk, too.
TIA
On 4/14/21 7:31 PM, Boris wrote:Are
Hi,
I want to purchase an umbrella policy to protect our assests against
personality liability claims. I want to protect real estate and investments.
We are retired.
If a judgement was made against me, would my (our) 401(k)s be at risk?
assumesocial security payments at risk?
We have other non-401(k) investments (cash and muni bonds) that I
would be at risk, as real estate would be at risk, too.401(k) plans are covered by the 1974 federal law known as ERISA. As
TIA
such, except for an IRS tax lien, creditors have no access to them.
The IRS can also go after an IRA for taxes owed. Whether a creditor can
go after your IRA varies by state. The following link has info on just
this subject by state: https://www.assetprotectionplanners.com/planning/ira-by-state/
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