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Gerald-Esquire, Lawyer
Category: Employment Law
Satisfied Customers: 3920
Experience:  30 years of experience
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I have a pension it is a IRS Benefit Plan. I have under

Customer Question

I have a pension it is a IRS Benefit Plan. I have under 100,000 in it. I started drawing early retirement last year. I have found myself in a financial bind. I had to help my son . I do not want to Bankrupt if at all possible. Is it possible for me to take the money out and pay off my debts?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Gerald-Esquire replied 1 year ago.
Hello,Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.Please do not remove money from your pension plan to pay off debts. Pension money is protected from creditors. That means they can not reach those funds even if they sue you, and those funds are protected in the event that you do need to declare bankruptcy. Also, when you draw the funds to pay the debts you have to pay taxes on those distributions. It is also important to understand that under both federal and state law there are a number of assets that are protected against creditors. This article explains the types of assets and amounts that are protected from creditors: I am not suggesting that you declare bankruptcy, but your pension asset is probably one of your largest protected assets. It is the last one you should draw from to pay debts. I hope the information I provide is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow up questions, feel free to ask. Please note that I am generally unavailable Friday evening through Sunday. Please do not forget to give me a positive rating. It adds nothing to your costs but it helps me greatly. Thank you.If you are dissatisfied with my response PLEASE let me know before giving me a negative review so that I may try to be of better assistance. Or if you prefer, let me know and I can “Opt Out” and your question can be re-posted without additional cost to you. I will be fair to you and only ask the same from you.Good luck. Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing. Kind regards,Gerald