403b security

[Bubba Crumb]

Alabama.

Hi.
I have a 403b retirement account. Does this have ERISA protection in Alabama? This is to ask, if a creditor has a judgement against me, can they garnish or gain access to my 403b retirement account?
While I have your attention, can a creditor attach a lien against my home, or automobiles if they are co-owned by me and my spouse if I am the only one that owes money to the creditor?
btw. This is a speculative question. There is no judgement against me at this time. At least not that I know of. I am trying to make my investments and property secure. Trying to determine the safest way to do that.
Sorry if this is not in the correct category. I wasn't sure where to put it.

THANKS!

 

[Zigner]

Alabama.

Hi.
I have a 403b retirement account. Does this have ERISA protection in Alabama? This is to ask, if a creditor has a judgement against me, can they garnish or gain access to my 403b retirement account?
While I have your attention, can a creditor attach a lien against my home, or automobiles if they are co-owned by me and my spouse if I am the only one that owes money to the creditor?
btw. This is a speculative question. There is no judgement against me at this time. At least not that I know of. I am trying to make my investments and property secure. Trying to determine the safest way to do that.
Sorry if this is not in the correct category. I wasn't sure where to put it.

THANKS!

You should speak with a financial advisor and an attorney for personalized assistance. You should not rely on an internet forum.

 

[Taxing Matters]

I have a 403b retirement account. Does this have ERISA protection in Alabama?

A § 403(b) account is subject to ERISA if certain conditions are met. So the details of the plan matter greatly. The best summary I found of what causes a § 403(b) plan to fail to qualify for ERISA is the following: what makes a § 403(b) plan subject to ERISA? Your plan administrator will know if the plan is subject to ERISA because if it is the plan administrator has a number of forms it must file and other administrative requirements to meet. So you can ask your plan administrator about whether it is an ERISA plan. Note that ERISA is a federal law and if it is an ERISA plan then under federal law private creditors cannot attach the plan regardless of what state the plan administrator is in or what state the plan participant is in.

Note that Alabama law protects from attachment by private creditors most every retirement type plan that is qualified under the Internal Revenue Code (IRC), including § 403(b) plans, regardless of whether those plans are covered by ERISA. The legislature added this provision in 2017. See Alabama Code § 19-3B-508.