In litigation-exposed professions, the creditor protection gap between a 401(k) and an IRA is one of the most consequential and least discussed features of the retirement system for high-balance ...
What Is Retirement and Creditor Protection? Retirement refers to the period in a person's life when they choose to stop working and rely on their savings, investments, or pension benefits to cover ...
401(k)s receive unlimited federal creditor protection under ERISA with no ceiling, while IRAs face a ~$1.7 million federal bankruptcy cap and weaker state-level protections outside bankruptcy, ...