Risks to Your Pension
IRS problems can bring you and your family a lot of stress. You’ve labored hard all your life to be able to have a home and a car. Now they could be taken away by the IRS. They’ve served you notice stipulating that in order to pay off the tax debt you need to pay, your assets are going to be seized. They can do it. Can they take your car, your home, even your pension?
There are some assets that the IRS can’t take to settle your tax debt.
- Furniture, food, fuel, and personal effects with a total of $2,500
- Clothing and school books
- Undelivered mail
- $1,250 worth of tools and job-related books
- Certain annuity and pension benefits, including Retired Serviceman’s Family Protection and Survivor Benefit Plan, Special Pensions for Medal of Honor recipients, Railroad Unemployment Insurance Act, and Railroad Retirement Act
- Some service-oriented disability payments
- Public assistance, job training, unemployment, and worker’s compensation benefits
- https://getirshelp.com/tag/irs-levy/The minimum amount exempt from a levy on wages, other income, and salary
- Deposit to the special Treasury Fund made by Public Health Service employees and members of the armed forces on permanent duty assigned outside the US
Your pension is at risk if you need to pay a considerably large amount to the IRS because certain annuity and pension benefits are not completely exempt.
Assets are seized in order, usually:
- Savings and checking accounts
- Vehicles – airplanes, cars, boats, recreational vehicles
- Life insurance
- Accounts receivable
- Stocks and bonds
- Real estate – recreational and investment
- IRAs, Keoghs, and pensions
- Your home
Pensions are low priority.
The IRS just seizes enough assets to pay the debt, though you should consider that interest and penalties are accumulating on top of it. Your pension is at risk if there are no other assets available to shoulder the tax debt.
If you have an IRS Problem and think you might need some help. Give us a call at (888) 438-6474. The call is free. Darrin T. Mish represents taxpayers all over the United States.