If found at fault in an auto accident, can your 401k be taken?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If found at fault in an auto accident, can your 401k be taken?
Bad accident, many cars piled up and one death.
Asked on March 15, 2017 under Accident Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
No, a 401k is exempt from execution or being garnished; that is, creditors cannot touch the money in the account or intercept the payments to you. BUT if and when you do take money out, if you take out more than you need and put some in a regular bank account, once it's in the regular bank account, creditors could reach it--it only has its protection when it is in the 401k or is in the form of the payments going to you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.