Bad news for alternate payees

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Alan S.
Posts: 12669
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Bad news for alternate payees

Post by Alan S. »

Spouses who receive a marital settlement consisting of defendant's ERISA protected 401k or their IRA account will forfeit creditor protection on those accounts. I think this decision will likely be appealed.


https://www2.ascensus.com/news/industry ... ankruptcy/
JBTX
Posts: 11227
Joined: Wed Jul 26, 2017 12:46 pm

Re: Bad news for alternate payees

Post by JBTX »

Alan S. wrote: Mon Oct 22, 2018 6:51 pm Spouses who receive a marital settlement consisting of defendant's ERISA protected 401k or their IRA account will forfeit creditor protection on those accounts. I think this decision will likely be appealed.


https://www2.ascensus.com/news/industry ... ankruptcy/
It was appealed and upheld. Hard for me to see the logic in the decision.
Topic Author
Alan S.
Posts: 12669
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Bad news for alternate payees

Post by Alan S. »

The panel decision to uphold can be appealed to the federal appeals court, and if the decision is further upheld, even to the Supreme Court.
megabad
Posts: 3638
Joined: Fri Jun 01, 2018 4:00 pm

Re: Bad news for alternate payees

Post by megabad »

Thanks for the post. I would argue this decision is not congruent with the intent of ERISA legislation, but I can't speak to the letter of the law. I think you may be right in that we will see further action on this case.
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