The Truth About Protecting Your IRAs and 401(k)s

Truth 31 IRAs, 401(k)s, and creditors

The simple answer to whether your 401(k) is subject to the claims of your creditors, such as a credit card company, is that it is not. Federal law exempts your 401(k) from the claims of almost anyone who has a claim against you. Of course, there are exceptions to every rule, and even 401(k)s may be subject to claims in a divorce or for child support. As for the federal government, its guiding rule is the Golden Rule; however, its version of the Golden Rule is that because the federal government has the gold, it makes the rules, and its rules generally allow the IRS and other federal agencies to get at your 401(k) despite the general rule that 401(k) accounts are not subject to the claims of ...