Can the IRS levy on my IRA?

Asked over 1 year ago - Cerritos, CA

I owe the IRS a lot of money. Yesterday the IRS levied my IRA. Does the IRS have authority to levy an IRA? How do I get it back? Thank you

Attorney answers (2)

  1. Bruce Givner

    Contributor Level 19

    1

    Lawyer agrees

    Answered . Since the IRS is able to get your interest in an employer sponsored qualified plan, see, for example, In re McIntyre, July 13, 2000, US-CT-APP-9, IRAs - which don't even arise to the level of protection of an employer sponsored plan (which has a chance at being protected by ERISA) are absolutely NOT protected from the IRS. Nor could they be protected from the IRS under state law. The IRS is a super-creditor.

  2. Ronald J Cappuccio

    Pro

    Contributor Level 16

    Answered . The IRS is in no better position than any other creditor to Levy against a retirement account. Some states have laws that protect IRAs as well is other types of retirement accounts. I am not sure of the specific laws in California which seems to be where you're from. In New Jersey, as well is most states, there are specific statutes protecting IRAs from collection by creditors and therefore the IRS cannot levy on the account. You should speak to a tax lawyer in your area right away!

    I hope this helps.

    Ron Cappuccio

    www.TaxEsq.com

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary... more

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