Protection from creditors

[ombskid]

I believe that a plan that covers employees is generally called an ERISA plan and is safe from creditors.

Can anyone point me to where that is explained in regs?

Thanks

[QDROphile]

Start with section 401(a)(13) of the tax code and section 206(d) of ERISA, but you will have to go to the bankruptcy code for a complete picture. Your question is not precise. A plan is not protected from its creditors. A participant's benefits are protected from the creditors of the participant.

[ESOP Guy]

Those rules are under the anti-alienation rules-- assuming like QDROphile said you really mean that the participant's benefits are protected from creditors.

[ombskid]

Are an owner/participant's benefits protected from the sponsor's as well as the participant's creditors?

[Lou S.]

Are an owner/participant's benefits protected from the sponsor's as well as the participant's creditors?

Generally speak yes but if you have any specific questions about your own benefits I would strongly recommend consulting an attorney who is versed in both bankruptcy and ERISA or at least a firm who has attorneys who can consult on both. Not doing so could be a very costly mistake.