.jpg)
New IRS Position re: secured claims on Pension Plans
"James T. King - King & Associates" wrote:
Does this mean the excluded 401(k)'s etc.?
yes, pensions and 401(k) are required by the tax laws to have an antialienation clause. Anything with an antialienation clause, per Patterson V. Schumate, does not become property of the estate. IRA's do NOT have and antialienation clause, so it does not include IRA's.
dennis
Do you Yahoo!?
Yahoo! Mail is new and improved - Check it out!
"James T. King - King & Associates" <king@kingobk.com> wrote:
Does this mean the excluded 401(k)'s etc.?
yes, pensions and 401(k) are required by the tax laws to have an antialienation clause. Anything with an antialienation clause, per Patterson V. Schumate, does not become property of the estate. IRA's do NOT have and antialienation clause, so it does not include IRA's.
dennis
Do you Yahoo!?
Yahoo! Mail is new and improved - Check it out!
The post was migrated from Yahoo.
Does this mean the excluded 401(k)'s etc.?
IRS Alters Stance on Bankruptcy Code Application to Certain Pension Plans
On September 9th, the IRS's Chief Counsel office announced it will no longer
argue the IRS may include in the value of its secured claim the debtor's
interest in a pension plan that is excluded from property of the estate
under Section 541(c)(2), a change in its litigating position on the
application of Bankruptcy Code Section 506(a) to pension plans excluded from
a bankruptcy estate under Bankruptcy Code Section 541(c)(2).
The IRS explained that under Section 506(a), a creditor with a lien on
property of the estate holds a secured claim to the extent of the value of
the creditor's interest in the estate's interest in such property. Section
541(a) provides that, upon the commencement of the bankruptcy case, an
estate is created that consists of all legal or equitable interests of the
debtor on that date.
Jim King
The post was migrated from Yahoo.