Guest tonys Posted August 28, 2002 Posted August 28, 2002 My wages are garnished (and will continue to be for basically forever) by the federal government due to old student loans. I have an esop that I don't contribute to but my employer does. I am not eligable to receive the money from the esop until I leave the company. At that time will the esop be garnished like my wages are (10%) ? I don't believe they can garnish my 401k (which will not be much anyway), but am confused about the esop. Thanks for any help!
mbozek Posted August 28, 2002 Posted August 28, 2002 Funds in a qualified plan (401k, ESOP) are subject to creditor's claims once they are paid to the participant. Also there may be federal legislation which permits the seizure of such assets once they become payable to a participant, e.g., IRS has authorthy to seize tax refunds to pay defaulted student loans. mjb
RLL Posted August 28, 2002 Posted August 28, 2002 Hi tonys --- Why don't you just pay off your debts to the federal government and then allow your ESOP and 401(k) benefits to be available for funding your future retirement income?
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