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Q&A Column: Retirement Accounts Protected by Bankruptcy Laws? Not Always.
The Christian Science Monitor
Nov. 15, 2004
Excerpt: Q: Can the government touch your 401(k) if you owe taxes or file bankruptcy? A: It depends on which government. States do not have the same authority as the Internal Revenue Service to impound any part of a participant's account, says Ivory Johnson, a certified financial planner in Annapolis, Md. Since most 401(k)s are protected by ERISA Title I, a federal law that governs these plans, state governments cannot attach an account for taxes owed.
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