401k better protection than an IRA

have client with a million in his 401k. He was just let go by his employer

Is the protection from creditors the same with a 401k as with an IRA or does the 401k have more protection?

Thank you,
Douglas



It depends on the state of domicile. In many states, the IRA creditor protection is about equal to that of a qualified plan. In other states, IRA creditor protection is limited and/or the person might have to file for BK to secure creditor protection.

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