General Question

srmorgan's avatar

Are IRAs and 401k accounts protected from seizure by the courts in order to satisfy a judgment?

Asked by srmorgan (6768points) July 2nd, 2012

If you lose a lawsuit and have to pay damages, can the other party attach or seize your retirement accounts such as an IRA or 401k plan account in order to satisfy the judgment?

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2 Answers

bkcunningham's avatar

I don’t think creditors can come after an employer sponsored IRA or 401K. Only the IRS or a spouse can do that. They are protected under the Employee Retirement Income Security Act.
http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html

anartist's avatar

And horrid though it might be, if you cannot afford to pay your lawyer when it’s all over, her/she cannot go after those assets either.

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