Are pension plans and 401(k) plans exempt?
Full Question:
Are pension plans and 401(k) plans exempt?
01/08/2007 |
Category: Bankruptcy |
State: ALL |
#217
Answer:
The United States Supreme Court has held that pension plans, 401(k) plans, and other "ERISA-qualified plans" are generally "excluded" from the bankruptcy estate. ERISA means the Federal Employee Retirement Income Security Act. Under this act, pension plans, 401(k) plans, and other "ERISA-qualified plans" are specifically prohibited from being assigned or alienated. What this means to the debtor is that the plan is excluded from the bankruptcy estate and remain the property of the debtor.
