"Stuart O. Bronstein" <[email protected]> wrote in news:[email protected]:

Boris <[email protected]d> wrote:

I want to purchase an umbrella policy to protect our assests
against personality liability claims. I want to protect real
estate and investments.

We are retired.

If a judgement was made against me, would my (our) 401(k)s be at
risk? Are social security payments at risk?

We have other non-401(k) investments (cash and muni bonds) that I
assume would be at risk, as real estate would be at risk, too.

This is really more of a question for a bankruptcy lawyer than a tax professional. The answer to your question is, maybe. Each state has
its own rules on what is or is not exempt from creditors. In some
states retirement funds are exempt. That may not be the rule in
every state. You need to talk to someone familiar with insolvency
law in your state.

Thanks, Stu.

Yes, it is a question for an insolvency lawyer, with whom I plan to pursue.

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On 4/15/2021 21:04, Boris wrote:

"Stuart O. Bronstein" <[email protected]> wrote in news:[email protected]:

Boris <[email protected]d> wrote:

I want to purchase an umbrella policy to protect our assests
against personality liability claims. I want to protect real
estate and investments.

We are retired.

If a judgement was made against me, would my (our) 401(k)s be at
risk? Are social security payments at risk?

We have other non-401(k) investments (cash and muni bonds) that I
assume would be at risk, as real estate would be at risk, too.

This is really more of a question for a bankruptcy lawyer than a tax
professional. The answer to your question is, maybe. Each state has
its own rules on what is or is not exempt from creditors. In some
states retirement funds are exempt. That may not be the rule in
every state. You need to talk to someone familiar with insolvency
law in your state.

Thanks, Stu.

Yes, it is a question for an insolvency lawyer, with whom I plan to pursue.

But should delinquent federal taxes and tax liens be at
issue, see this section of the Internal Revenue Collection
Manual regarding levy of IRAs, Social Security, etc.:

https://www.irs.gov/irm/part5/irm_05-011-006

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
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On 4/14/21 7:31 PM, Boris wrote:

Hi,

I want to purchase an umbrella policy to protect our assests against personality liability claims. I want to protect real estate and investments.

We are retired.

If a judgement was made against me, would my (our) 401(k)s be at risk? Are social security payments at risk?

We have other non-401(k) investments (cash and muni bonds) that I assume would be at risk, as real estate would be at risk, too.

TIA

401(k) plans are covered by the 1974 federal law known as ERISA. As
such, except for an IRS tax lien, creditors have no access to them.
The IRS can also go after an IRA for taxes owed. Whether a creditor can
go after your IRA varies by state. The following link has info on just
this subject by state: https://www.assetprotectionplanners.com/planning/ira-by-state/

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

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Alan <[email protected]> wrote in news:s5qib5$9e8$[email protected]:

On 4/14/21 7:31 PM, Boris wrote:

Hi,

I want to purchase an umbrella policy to protect our assests against
personality liability claims. I want to protect real estate and investments.

We are retired.

If a judgement was made against me, would my (our) 401(k)s be at risk?

Are

social security payments at risk?

We have other non-401(k) investments (cash and muni bonds) that I

assume

would be at risk, as real estate would be at risk, too.

TIA

401(k) plans are covered by the 1974 federal law known as ERISA. As
such, except for an IRS tax lien, creditors have no access to them.
The IRS can also go after an IRA for taxes owed. Whether a creditor can
go after your IRA varies by state. The following link has info on just
this subject by state: https://www.assetprotectionplanners.com/planning/ira-by-state/

Thanks, Alan,

My concerns is not tax liens, as I'm always ok with the IRS and my state,
I was just wondering about things like slip and fall suits in my home or
in my short-term-rental property. For my state, I'll have to contact an attorney, as the per the chart.

I will contact an attorney.

Thanks again.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>

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