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Posted by A.G. Kalman on February 26, 2007, 12:35 am
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asdf wrote:
> Will some financial institutions accept a 401k as collateral
> for a loan? I want to use the 401k first to get the loan
> and second to keep the loan rate low by provided collateral.
> I dont want to take money out of the 401k...
I don't see how as a 401(k) is a qualified plan under ERISA
(Employee Retirement Income Security Act) and as such the
assets are protected from creditors. Remember the O.J.
Simpson civil trial? OJ lost and the plaintiffs were awarded
millions of dollars of compensatory damages. O.J. had a
$4,000,000 pension that was not subject to civil court
judgments.
--
Alan
http://taxtopics.net
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