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Chapter 7 filing, Gov't 403b Plan


Guest Fred Dutcher

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Guest Fred Dutcher
Posted

It is generally the case in a gov't hospital 403b plan that when a participant files Chapter 7 that the assets in his account are available to creditors, unlike a qualified plan under ERISA?

Guest ESOPwizard
Posted

I believe that there was a ruling on this published within the last week.

Even if the 403(B) is not subject to the anti-alienation rules of ERISA, the account or annuity may be protected under state law. I recommend that you talk to a bankruptcy attorney.

  • 2 weeks later...
Posted

H.R.833 (The Bankruptcy Reform Bill) passed the House on May 5 - but even if it passes the Senate, I understand Clinton is expected to veto the bill. It extends federal bankruptcy protection to IRAs, 457, 403(B)s and other pre-tax retirement plans.

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