IRA (NYS ) protection in the DOL world
As an Advisor in NYS -would an IRA be protected in a legal action under the dol ?
I would assume a 401k offers higher level (ERISA) protection, however, does it change, if you are the higher contributor to the 401k compared to employees in the plan ?
Permalink Submitted by Alan - IRA critic on Tue, 2017-06-06 19:50
Not sure I understand your question. NYS fully protects IRA accounts from creditors of the IRA owner. Neither 401k plans or IRAs are protected from federal tax liens or marital settlements. The new fiduciary rules will affect advisors and will increase their legal exposure for certain actions, but that should have no affect on creditor protection for IRAs in NY or qualified plans under ERISA.