Court rules inherited 401(k) funds are protected in bankruptcy
A North Carolina Bankruptcy Court decided that inherited 401(k) accounts do indeed receive creditor protection under ERISA as long as the funds are still in the plan at the time of the bankruptcy filing.
ERISA is the creditor protection gold standard for company retirement plans. But what happens when those plans are inherited? Does the ERISA protection carry over to beneficiaries? One court says “yes.”
In the case of Dockins (In re: Dockins, No. 20-10119), the U.S. Bankruptcy Court for the W
Learn more about reprints and licensing for this article.