O.J. Simpson has been in the news for decades, long before his name become synonymous with brutal slayings and side show trials. As a result, he amassed considerable wealth that became venerable after being slapped with massive civil damages for the deaths of Nicole Brown and Ron Goldman. However, while he has lost most everything else, his lucrative pension from the NFL has never been under threat by his many creditors. This is due to the fact that under ERISA employer sponsored retirement plans, such as a 401(k), cannot be touched by creditors. However, this protection has a limit as the money must remain in the employer retirement account, or an IRA that has not been commingled with other funds, or else the protection is limited or lost. As a result, anyone who feels they might be subject to attack by creditors should think twice before moving funds away from an ERISA covered plan. While other retirement funds might offer other benefits, none will grant the creditor protection employer sponsored plans will receive. Just look at O.J. Simpson for proof.
See Martin Walsh, How O.J. Simpson and Lance Armstrong Protected Their Millions, Wealth Management, August 4, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
