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Is my retirement plan protected from creditors?
Answered By Randy Yingger, Editor
With the enactment of the Employee Retirement Income Security Act of 1974 or ERISA, you can be confident that your retirement plan is protected from your creditors. This act states that all plans that are qualified under its rules be protected and cannot be assigned as an asset in the plans of a creditor. This is effective even in bankruptcy cases.
Although some plans that only cover you or your partners and not the companies employees is not protected by this act. These includes IRA’s, Keogh’s, Sep, Roth and Simple.
--- permission must be obtained from editor Randy Yingger to re-publish ---
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