Fred Reish Speaks to Financial Planning About Individual Retirement Account Laws

In “Ask an advisor: Which retirement plan is the safest from lawsuits?” Financial Planning turned to benefits and executive compensation partner Fred Reish for insight on laws for individual retirement accounts (IRAs) and more.

“Every state has a different law about whether creditors can attach an IRA or not,” Reish explained. “For example, California says you can retain the amount reasonably needed for retirement. But if you have more than that, the creditors can get to it.”

Reish added, “In divorce, it’s very common. Either the plan gets divided between the spouses, or…one spouse says, ‘I’ll keep the retirement plan,’ and the other spouse says, ‘That’s okay, I get the house.’”

The full article is available for Financial Planning subscribers.