Guest Posted November 4, 2009 Posted November 4, 2009 Is a sole proprietor's 401(k) plan benefits protected from the IRS and State tax liens? Can a distribution be forced?
J Simmons Posted November 4, 2009 Posted November 4, 2009 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. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Guest Posted November 4, 2009 Posted November 4, 2009 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. Sorry, is it no, the benefits are not protected or no the IRS can not force a distribution? Thanks
J Simmons Posted November 4, 2009 Posted November 4, 2009 The IRS may levy against the 401k benefits for unpaid taxes owed by the owner/employee. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
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