Is there such a thing as a court ordered judgment to seize my 401k?

Answer by  patti (29325)

Bankruptcy laws were changed in 2005 and in most cases, 401K funds cannot be seized. There are exceptions, though. Otherwise, your retirement fund cannot be seized or attached in common circumstances. Specifics should be addressed by an attorney.

Answer by  Jalaine11 (2043)

Your 401K is like a saving account. That money can be seized to pay off debt or if you are married and get a divorce the 401k would be split with your spouse as well as any gains made from the amount you have until the time it is withdrawn.

Answer by  flamiss22 (5081)

A judgement is simply an order to collect money owed and if you have some in your 401k they can get indeed garnish it.

Answer by  technogeek (6640)

If you owe money to the government, your 401K can be seized to help pay back the amount that you owe. However, if you invest in an annuity, the annuity is protected against judgment. You should consider withdrawing your 401K and investing the amount into an annuity. You will be taxed for the withdrawal, but your retirement is protected.