can IRS grab 401(k) to pay taxes owed?

[MR]

I am looking for a good source addressing whether or not and under what conditions the IRS can take a participant's 401(k) account. Any suggestions?

[BeckyMiller]

There is a recent bankruptcy case that gives a good discussion of these rules. See Internal Revenue Service v. Snyder, 9th Cir., No. 02-15618, 9/15/03. You can find it at http://www.cfsresearch.com/cr/CCO/02-15618.htm.

It is a pretty long and complicated discussion that goes through a lot of the controversy regarding bankruptcy protections. But, it also gives you the cites to the basic authority for the IRS to file a claim against 401(a) plan assets.

I also think that if you look to the regulations, there is specific authority for this in the regs. I would check that through any of your basic pension services - CCH, BNA, etc.

[Belgarath]

See 1.401(a)-13(b)(2).

[MR]

Thanks. That's the one I'm looking for.