I have a judgment against me (about $26k). A dispute over a real estate down payment.I understand creditors cannot touch 401k money. Does that apply to when you make withdraws? Also, if they cannot touch 401k money, do they have the right to examine my 401k account? I am retired and know my social security and home are protected. Just wondering about 401k. Really rather not have them poking around in those records if possible.
Country relating to Question: United States
State (if USA): Kansas
just preparing for when this judgment coming my way
Hello and thank you for the question. I am sorry to read of this dilemma. Indeed the creditor cannot touch the 401k or ss accounts. They may not examine those records or take distributions therefrom. The reason for the exemption and protection is to shelter certain assets and ensure people are not driven into poverty due to a debt and able to use funds for living expenses.
Licensed attorney helping individuals and businesses
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