- Retirement: A Lifestyle Choice
- Myths of Retirement Planning
- Retirement Sources of Income: The Three-Legged Stool
- The Case for Pre-Tax Savings
- Basic Retirement Guidelines
- Inflation: The Incredible Shrinking Monster
- Big Picture Preview
- Calculating Your Personal Retirement Assets
- Beyond the Basics: Bulletproofing Your Savings
- Saving More for Retirement
- Making Up the Shortfall
- Simple Tax-Advantaged Planning Strategies To Consider
How Company Retirement Plans Protect Your Savings
Generally, your retirement benefits are protected in such a way that no one other than you will be allowed an interest in your benefit. There are certain exceptions to this rule, such as a divorce settlement where a qualified domestic relations order is in effect. This is one of the few times that another individual would have a right to a portion of your retirement benefit. In addition, although a qualified retirement plan is exempt from the claims of general creditors in a bankruptcy proceeding, the exclusion does not apply to a federal tax lien.
Your retirement benefit is also protected in another way. If you have a defined benefit plan, your employer must pay an annual insurance premium that will provide you with a guaranteed benefit in case of company bankruptcy. This guaranteed benefit applies to defined benefit plans only and the maximum monthly benefit amount is capped, so you may not receive your full benefit.
Will Disaster Wipe Out Your Life Savings? Know Where and How to Get Help
Many large employers include services in their benefits package that can help the employee get immediate assistance to handle problems in and out of the workplace. A small problem today left unaddressed can turn into a major problem tomorrow with a pretty high price tag—your personal retirement savings.