This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.
Subscribe to the Daily Journal for access to Daily Appellate Reports, Verdicts, Judicial Profiles and more...

Tax

Oct. 15, 2024

Major changes to California retirement plan protections coming in January 2025

California law currently exempts tax-qualified retirement plans and their distributions from creditor claims, provided distributions are deposited into a segregated bank account. However, IRAs are only partially exempt based on a means test.

Shutterstock

On Jan. 1, 2025, a new California law goes into effect, significantly reducing the protection currently afforded to tax-qualified retirement plans.

Currently, California law, like federal law, fully exempts from creditor claims the assets of a debtor in a tax-qualified retirement plan (think 401(k), defined benefit, or profit-sharing plans). California also currently fully exempts from creditor claims the distributions from these plans, so long as they a...

To continue reading, please subscribe.
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!

Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)

Already a subscriber?

Sign up for Daily Journal emails