Full Version: Alienation of benefits
Is a sole proprietor's 401(k) plan benefits protected from the IRS and State tax liens? Can a distribution be forced?
From the IRS, no.
As for the state, it would depend on whether the 401k plan also benefits (or possibly has ever benefited) any non-owner employee that is not the spouse of an owner.
As for the state, it would depend on whether the 401k plan also benefits (or possibly has ever benefited) any non-owner employee that is not the spouse of an owner.
QUOTE (J Simmons @ Nov 4 2009, 05:35 PM) 
From the IRS, no.
As for the state, it would depend on whether the 401k plan also benefits (or possibly has ever benefited) any non-owner employee that is not the spouse of an owner.
As for the state, it would depend on whether the 401k plan also benefits (or possibly has ever benefited) any non-owner employee that is not the spouse of an owner.
Sorry, is it no, the benefits are not protected or no the IRS can not force a distribution? Thanks
The IRS may levy against the 401k benefits for unpaid taxes owed by the owner/employee.
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