401 K VS IRA/ROLLOVER
Please advise if you have any info on creditor protection from a 401k account VS IRA accounts. Also do have any articles brochures on benefits of rolling A 401K to IRA.
Thank You.
Please advise if you have any info on creditor protection from a 401k account VS IRA accounts. Also do have any articles brochures on benefits of rolling A 401K to IRA.
Thank You.
Permalink Submitted by Alan - IRA critic on Wed, 2018-08-01 17:20
401k accounts have ERISA creditor protection, which is the broadest possible. However, many states also provide complete creditor protection for IRA accounts, so the comparison is state specific. Other than creditor issues, the decision to roll over to an IRA depends on many variables including investment options, investment expenses, loan options from 401k, early withdrawal penalty exceptions which differ somewhat, access to funds, ability to convert to a Roth IRA, and beneficiary options when the account is inherited.
Permalink Submitted by Michael Scaraggi on Wed, 2018-08-01 19:13
I appreciate your response. If possible do you have current provisions for creditor protection for NJ?Would appreciate and Thank You.
Permalink Submitted by Alan - IRA critic on Wed, 2018-08-01 19:58
NJ does provide 100% creditor protection for IRAs you own, but not for inherited IRAs unless the legislature has recently extended such protection..