Wednesday, December 13, 2017
Can the IRS levy my retirement accounts and Social Security payments?
Here at Shenwick & Associates, many of our clients have concerns regarding tax issues. In some cases, tax debts can be discharged in bankruptcy (as we wrote about most recently here). However, in many cases, the IRS has already filed a Notice of Federal Tax Lien (putting other creditors on notice of the government’s legal claim against your property), has issued a Final Notice of Intent to Levy (which means that the government is considering taking a portion of your salary, your bank accounts, your other property and/or your real estate) or may have begun levying property. Based on the Employee Retirement Security Act (ERISA) and other federal law, ordinary creditors can’t access Social Security payments and retirement accounts and income to satisfy debts, but government agencies (like the IRS) can. For an excellent review of the IRS’ abilities to levy on these assets, we recommend this post on pension plans and IRAs and this post on Social Security payments.
All of us at Shenwick & Associates wish you a safe and happy holiday season, and we’ll be here for you in 2018.
Posted by James Shenwick