Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Is 401k considered an asset in IRS Insolvency related to debt forgiveness?

Is 401k considered an asset in IRS Insolvency related to debt forgiveness?

RELATED POSTS:

  1. Is 401k considered an asset in IRS calculation of Insolvency related to debt forgiveness? ...

  2. Insolvency Problems related to Banks Sector Vs. Insurance Sector? Explain why (a) and (b) might be related (a) Insolvency problems have been much worse in the banking and savings...

  3. 1099 Mortgage Forgiveness Tax Liability Insolvency www.DebtWorkoutCoach.org Can mortgage forgiveness result in a 1099 and if so, can you escape tax liability for mortgage forgiveness...

  4. Mortgage Forgiveness Debt Relief Act: The 411 If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be...

  5. Mortgage Forgiveness Debt Relief Act Find out what the Mortgage Forgiveness Debt Relief is (and is NOT)… ...

Written by

Filed under: Insolvency · Tags: , , , , , ,

3 Responses to "Is 401k considered an asset in IRS Insolvency related to debt forgiveness?"

  1. v b says:
    Oh, yes.

    The IRS updated publiction 4681 to give a sample worksheet for insolvency on page 6. 401K is listed on line 30.

  2. Laverne says:
    I called the IRS on this one because the text on page 4 of publication 4681 is confusing. It is considered income even though it is beyond the reach of your creditors. And even if you let your debt go into collection and settle for a lower amount the debt cancellation is still taxable income. I told the tax agent jokingly that you are dam’d if you do and dam’d if you don’t.
    I may decide to try and settle with an agency in 2010 when I have far less income. Who knows?
  3. Chuckie O says:
    The 401(k) is considered a big bank account.

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player