is "ira" money safe from the feds, if you owe back taxes?

Answer 1

I've never heard of them taking money from retirement savings. I'm not sure, but I don't think they would.

I think it's more likely they would garnish your income or your bank account. If they went after people's retirement money then they could just take everything from your social security account easily, but I've never heard of that happening.

Answer 2

HI and Good morning,

The answer is YES! Reason I know I owe 8000. in back taxes and am currently dealing wiht the IRS and they have already started proceedings for LEVY..which is fine with me. Only because they have nothing to levy. After they have investigated this, and found they have nothing to collect from me, they started asking me about my bank accounts, 401K, and IRA..and they did state, since your are delinquent anything you have set aside or owe, is theirs for the taking. Go the Irs website and look up information regarding THE IRS COLLECTION PROCESS. Also you can e-mail me and I have tons of forms and infomration. I see my IRS officer handling my case almost every freaking day. IMPORTANT INFOMRATION FOR YOU.....so you can be certain they will take your IRA...see publication 433A....this form is used when you owe the IRS....it does mention listing all accounts including IRA. Hope this helps. I understand this is a bad time....but there is always hope.

Also when I stated that they have nothing to levy..I say this because I sold my car, don't own my own home, and all my accounts have been closed. I mainly went broke, financing my sons education....so all they really can have are my clothes and some purses and shoes. My I am being put on an installment plan. I emptied my 401K, about 1 yr ago....they can't have any of that! but now I have penalties and interests compounding on a daily basis..it suxs but better than going to prison!

Answer 3

HELL NO it's not safe if you owe money to the feds & you don't pay it, they will come & get it one way or the other. If it means digging into your retirement accouts, THEY WILL. I suggest you pay what ever you owe to feds before opening an IRA or any account for that matter.