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401k to IRA
Old 04-09-2013, 08:20 PM   #1
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401k to IRA

I have a 401 k at TRP and I'm thinking of moving it to an IRA at Vanguard. I live in NY and was wondering what the laws are if you should get sued. I've heard that a 401k cannot be touched as part of a settlement but that an IRA is fair game. Does anyone have any insite on this.
If I move the 401k to an IRA at Vanguard any thoughts on where to put the proceeds? The account has a value of .5 mil and I'm 60. Any thought's or guidance would be appreciated
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Old 04-09-2013, 08:26 PM   #2
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Quote:
Originally Posted by Allegany View Post
I have a 401 k at TRP and I'm thinking of moving it to an IRA at Vanguard. I live in NY and was wondering what the laws are if you should get sued. I've heard that a 401k cannot be touched as part of a settlement but that an IRA is fair game. Does anyone have any insite on this.
If I move the 401k to an IRA at Vanguard any thoughts on where to put the proceeds? The account has a value of .5 mil and I'm 60. Any thought's or guidance would be appreciated

i looked at moving part of my current 401k to

trp a month ago. as far as i know you have to request a check from your current 401k=they send it to you and you send it to were you want tot go.

contact vanguard and i;m sure they will tell you what to do.
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Old 04-09-2013, 08:28 PM   #3
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Depending on the state, IRA's **may be** subject to attachment to satisfy judgements. One option to minimize that risk is a good umbrella insurance policy.
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Old 04-09-2013, 09:51 PM   #4
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Depending on the state, IRA's **may be** subject to attachment to satisfy judgements. One option to minimize that risk is a good umbrella insurance policy.
+1
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Old 04-10-2013, 09:16 AM   #5
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Cannot find a ref just now, but IIRC ERISA protection did not cover IRA's but did protect 401k funds rolled over into an IRA. And as AWeinel said many states (NY??) protect IRA's from most judgements. I would check with lawyer to be sure.
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Old 04-10-2013, 09:37 AM   #6
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Originally Posted by ERhoosier
Cannot find a ref just now, but IIRC ERISA protection did not cover IRA's but did protect 401k funds rolled over into an IRA. And as AWeinel said many states (NY??) protect IRA's from most judgements. I would check with lawyer to be sure.
CA has limit of what is protected, FL had a court case where an inherited IRA is considered fair game. 401k fall under federal jurisdiction. Unless your 401k is expensive or poor selection if funds, I wouldn't just to have convenience of everything in 1 place
TJ
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Old 04-10-2013, 10:52 AM   #7
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Originally Posted by gerrym51 View Post
<snip>
as far as i know you have to request a check from your current 401k=they send it to you and you send it to were you want tot go.
<snip>
OT, but this is not the best way to do it. It is much better to do a trustee to trustee transfer.
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Old 04-10-2013, 11:26 AM   #8
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Quote:
Originally Posted by Allegany View Post
I have a 401 k at TRP and I'm thinking of moving it to an IRA at Vanguard. I live in NY and was wondering what the laws are if you should get sued. I've heard that a 401k cannot be touched as part of a settlement but that an IRA is fair game. Does anyone have any insite on this.
This has been discussed here before, usually pointing to this section from Bogleheads: Asset protection - Bogleheads

Quote:
If I move the 401k to an IRA at Vanguard any thoughts on where to put the proceeds? The account has a value of .5 mil and I'm 60. Any thought's or guidance would be appreciated
At that level ($500K), you should qualify for Vanguard's Voyager Select Service, which would get you a few extra perks, including some advice from Vanguard on where to put the proceeds. https://personal.vanguard.com/us/wha...vices/flagship

Can't hurt to listen to what they have to say, look into it further, and decide for yourself if it makes good sense for you.

Tyro
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