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The accounts receivable in the business are not protected and will be available to creditors of the business. If they are held as personal assets they will not be protected in a bankruptcy. I do not know that there are good solutions. You might try creating a pension plan but that would have to cover all employees and that may not be feasible. You might try distributing the A/R to yourself in varying amounts and contributing those assets to an IRA. I suggest you speak to an ERISA experts to see if this is feasible and then decide if it can be done practically.
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The "only" employees of the company are myself and (2) of my sons. No one else. Give me more info on the possibility of a pension plan that "might" protect the assets that are currently in the form of AR's. Thanks
You would have to create a pension plan that you would fund with A/R instead of cash. So you could make up to 25% of you compensation in contributions to the plan but you would have to do so for all employees. You will need to work with an ERISA specialist to make sure the structure was correct. The problems are that once you transfer the A/R the business loses the cashflow from those assets which may not be workable. Also, all employees have to participate in the plan and not just you.
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