Can a creditor seize my retirement savings?

Debt, Personal Finance, Retirement Savings
Sort By:
Most Helpful
July 2017
100% of people found this answer helpful

Retirement savings with a former or current employer-sponsored plan are protected from creditors.  For example, 401(k) plan assets cannot be seized by bankruptcy or creditors.  

However, if your retirement savings are held within an IRA, then those funds are potentially unprotected against creditors and have a bankruptcy limit of $1M.... Unfortunately, the level of creditor protection depends on the state you live.  In which case, I would get a good attorney if you are concerned about any exposed IRA assets.  

To clear up any potential confusion between an IRA and a 401(k), check out the following link to learn more about their differences.

December 2007
June 2017
July 2017
May 2017