Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Insolvency » when claiming insolvency are 401 k accounts exempt as assets?

when claiming insolvency are 401 k accounts exempt as assets?


  1. What do you do when your customer who accounts for 33% of your revenue declares insolvency ? There is a product say SP-100 for which A is the exclusive customer. A contributes to 33 % of my...

  2. Director claiming redundancy and other payments in Insolvency It has often been considered that a company director cannot claim redundancy, and loss of other benefits of his employment...

  3. Insolvency because of forgiven debt – Do you list your monthly income with your assets? If you list your monthly income, is it gross or net? Also, for pensions do you list net value (after...

  4. Bank Accounts After Bankruptcy: Helps To Build Up Your Savings Bankruptcy puts an individual in a very awkward situation. As if you declared bankrupt you have to lose almost everything...

  5. Top 10 Most Used Insolvency Terms Our list, of the most used insolvency terms in England, Wales and Northern Ireland, should help you to get your...

Written by

Filed under: Insolvency · Tags: , , , ,

3 Responses to "when claiming insolvency are 401 k accounts exempt as assets?"

  1. bostonianinmo says:
    Retirement accounts are normally not part of the bankruptcy estate and are not taken to satisfy the debts.
  2. wartz says:
    For the purposes of determining insolvency to exempt cancellation of debt income, all assets are included. For bankruptcy, a 401(k) is exempt.
  3. v b says:
    The IRS isn’t making you sell your assets to use form 982, so EVERYTHING is included. The IRS has clearly said that even if an asset is exempt under the bankruptcy laws of your state, it’s STILL included when determining if you are insolvent. (Or figuring out the asset reduction limit.)

    You don’t even get to reduce the amount by the future tax liability. (And don’t even thing about leaving it off–your W-2s in the system will show that you’ve been putting money into one.)

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