This video answers the question: Can I borrow Money From My Retirement Plan?
In this short video, Maurice Arcadier, a board certified attorney in Labor and Employment law, explains that the question is not easily answered unless a lot of information is given. For instance, it matters what the loan is for, and into what product the retirement monies have been put in. Additionally, any penalties associated with early withdrawal are contingent on whether the monies are pre-taxed or post tax.
Moreover, there are differences between private retirement accounts, employment-sponsored retirement accounts, and whether employer is a government agency or a private company. Retirement plans are normally governed under Federal Law. It is an employment law specialty governed under ERISA. ERISA stands for the Employee Retirement Income Security Act of 1974 (ERISA), which was enacted September 1974, and codified at 29 U.S.C. ch. 18.
However, under most retirement accounts, loans are possible depending on the circumstances surrounding the loan, as well as many other factors including your age, reason for the loan, and amount of the loan needed.
For an individual to fully understand his or her rights under an erisa plan or a non-exempt retirement plan, an attorney should be consulted who is familiar with ERISA law, and labor and employment law. An accountant should also be consulted as to the tax implications of the plan, as attorneys, who are not accountants or certified in taxation, can not give tax advice.
At Arcadier and Associates, Partner Maurice Arcadier is board certified in labor and employment law and is well versed in the law concerning retirement accounts.
For more information, please visit our erisa page
October 20, 2013
Our Melbourne office is centrally located in Brevard County, enabling our lawyers to serve clients throughout “the Space Coast”, including Cocoa Beach, Palm Bay and Vero Beach.