contribution towards to 401(k)

[starte]

What is the name of your state (only U.S. law)? Miami, Florida

I am defending a civil lawsuit and awaiting final judgment. The court determined that I am responsible for some of the claims of the plaintiff but asked the plaintiff to prove the damages (and the amount of damages). The final hearing date is not yet set. Till now, I do not owe any money/payment to any person or entity. Now, before the final hearing takes place, I wish to contribute more of my future earnings (not the existing earnings) towards the 401(k) annuity contract, which is creditor proof. Will these contributions be treated as fraudulent transfers during garnishment or during bankruptcy (if I ever apply for bankruptcy in the near future)?

Thanks in advance.

 

[LdiJ]

What is the name of your state (only U.S. law)? Miami, Florida

I am defending a civil lawsuit and awaiting final judgment. The court determined that I am responsible for some of the claims of the plaintiff but asked the plaintiff to prove the damages (and the amount of damages). The final hearing date is not yet set. Till now, I do not owe any money/payment to any person or entity. Now, before the final hearing takes place, I wish to contribute more of my future earnings (not the existing earnings) towards the 401(k) annuity contract, which is creditor proof. Will these contributions be treated as fraudulent transfers during garnishment or during bankruptcy (if I ever apply for bankruptcy in the near future)?

Thanks in advance.

Possibly...because that is exactly what you are trying to do. You are trying to shield assets from creditors or potential creditors.

 

[starte]

Appreciate your response. Section 222.30 states "...if the debtor made the conversion with the intent to hinder, delay, or defraud the creditor."

I have no intention of hinder, delay, or defraud the creditor by putting money in the 401(k) annuity but to make my retirement life more peaceful.

 

[Zigner]

Appreciate your response. Section 222.30 states "...if the debtor made the conversion with the intent to hinder, delay, or defraud the creditor."

I have no intention of hinder, delay, or defraud the creditor by putting money in the 401(k) annuity but to make my retirement life more peaceful.

Oh bullpucky. The ONLY reason you want to increase your contribution is to shield the money from the creditor.

 

[starte]

Appreciate your response. However, in the legal arena, how the court or someone else prove what was my intention?

any way, If it is determined that a they are fraudulent transfers then what the court can do?

 

[LdiJ]

Appreciate your response. However, in the legal arena, how the court or someone else prove what was my intention?

any way, If it is determined that a they are fraudulent transfers then what the court can do?

They don't have to prove your intention. If they determine that the transfers were fraudulent then they will make you take the money back out, and that won't absolve you from paying taxes and penalties on the money you have to take out.

All in all, its a really BAD idea.