QUESTION
Will they take my money if I retired from my job, went to another one, and cashed in my 401k?
Asked on Apr 16th, 2017 on Bankruptcy - Nevada
7 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If you cashed in your 401(k), did you roll it over to an IRA? Then you're OK and it will not be taken in bankruptcy. But if you are just holding the cash, then (1) you're not dumber than a bag of hammers but no much smarter and (2) the bankruptcy court will take the money.
Answered on Jul 14th, 2017 at 7:42 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The outcome depends on many facts. Did you roll over the money into some other tax-qualified retirement plan or IRA? Did you report the withdrawal on your income tax returns? How much money is involved? You would do well to retain a skilled bankruptcy lawyer in your locality; it's almost always worth the investment.
Answered on Jul 13th, 2017 at 4:07 AM
I can't tell from your question exactly what your question is. It sounds like you previously filed a Chapter 7. The Chapter 7 Trustee is typically noticed interested in something of this nature AFTER the filing of your case. If you think it's important, pay a lawyer to review your file with you.
Answered on Jul 13th, 2017 at 4:07 AM
Once you cash in your 401k it is treated as regular income and is considered an asset in bankruptcy.
Answered on Jul 13th, 2017 at 4:07 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Depends on the amount you have on hand and what other real or personal property you own.
Answered on Jul 13th, 2017 at 4:06 AM
I have no idea who THEY are or in what context you are concerned about having money taken. However, if you cash out any retirement account, it frequently loses its protected status under state and federal exemption laws.
Answered on Jul 13th, 2017 at 4:06 AM
1 Award
It depends on the timing of everything. If you don't do things in the proper order, then YES, the court can take the money. If you do things in the proper order, the NO, they money is safe. It is worth paying an attorney to make sure this is done correctly.
Answered on Jul 13th, 2017 at 4:06 AM