UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: 457 exposure to creditors Date: 9/3/1998 5:39 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Dennis, you wrote:

Okay, I broke down and used the phone. I called the Public Employees Benefits Services Corporation (PEBSCo) which is the plan administrator for my wife's 457 deferred compensation program. According to the very helpful person at the other end of the line, legislation in the form of the Small Business Job Protection Act of 1996 signed by Bill Clinton *does* protect 457 accounts from creditors (both personal creditors and those to whom your employer is beholden). The Act requires plan administrators to set up custodial accounts with banks to enable this protection (e.g., Bank One of Columbus OH for PEBSCo accounts). All "units" (i.e., counties, municipalities, etc.) are supposed to be in compliance by Jan 1, 1999. I don't know if this satisfies your request for legal citation, but I did fire off an email to PEBSCo before talking to them on the phone so more info may be forthcoming. Hope this helps.

It does and did indeed. Finally, I can nail this one down. And your info is correct as it pertains to governmental 457 plans. Those of tax-exempt organizations with 457 plans, though, will still see their accounts subject to the claims of their employer's creditors. As for you, it looks like your spouse is safe. First, the plan must be funded and that money must be held in trust. A giant leap forward for city, county, municipal and state employees with such plans.

Thanks for the post.

Regards…..Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement