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Posted

Is a sole proprietor's 401(k) plan benefits protected from the IRS and State tax liens? Can a distribution be forced?

Posted

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.

Posted
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

Posted

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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