IRA Garnishment
I believe retirement benefits are ordinarily exempt from civil judgements/collection processes EXCEPT for IRS levies and child suport payments – am I correct in my assumptions?
Thanks in advance!
K
I believe retirement benefits are ordinarily exempt from civil judgements/collection processes EXCEPT for IRS levies and child suport payments – am I correct in my assumptions?
Thanks in advance!
K
Permalink Submitted by Alan Spross on Fri, 2008-10-24 20:04
Your post subject shows an IRA account, so will only address IRAs and not employer plans.
IRAs are not protected against the levies you mentioned as well as those of marital settlements of all kinds, not just child support. With respect to other creditors, the level of protection depends on your state law and how it relates to the federal bankruptcy protection that applies in all states. In states that fully protect IRAs, a bankruptcy filing is not required to protect IRA assets.
In the following link, look up your state and check the footnotes that apply.
http://www.assetprotectionbook.com/state_resources.htm
Permalink Submitted by Kevin DeNardo on Fri, 2008-10-24 20:08
Much appreciated Alan – have a great weekend!
K