If I cash out my 401k can the government take it due to my default student loans? 5 Answers as of February 13, 2014

I haven't been working and have just recently gotten a part time job. No wage garnishment as started. But I need my 401k money to get transportation. A lump sum amount was given last year from a tax refund.

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Kirby G. Moss PC | Kirby G. Moss
Not enough info here to respond but unless your 401k tied to govt somehow, unlikely govt will have any notice of it.
Answer Applies to: Indiana
Replied: 2/13/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
They can not take the money from the 401k account but they can seize once it hits a regular bank account if they have already set up for the bank freeze.
Answer Applies to: New York
Replied: 2/12/2014
Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
Before you cash out your 401K, investigate the student loan income based repayment plantry to get something in place. Also, remember that cashing out your 401K can have major tax implications.
Answer Applies to: Arkansas
Replied: 2/11/2014
SmithMarco, P.C.
SmithMarco, P.C. | Larry P. Smith
If you take the money out of the plan, it is no longer protected as exempt funds. It is considered income and can be taxed as income, and it can be attached to by a creditor.
Answer Applies to: Illinois
Replied: 2/11/2014
Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
Quite likely. Explore whether a loan is possible.
Answer Applies to: Illinois
Replied: 2/11/2014
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