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Bank Accounts The Irs Cant Touch

By Hafsa Binte Omar

In uncertain financial times, people want assurance that their hard-earned money is safe. One way to do this is to open a bank account that the IRS cannot touch. Bank accounts of this type are commonly referred to as “protected assets” because they give people the peace of mind of knowing their money is secure.

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  • Source: Google.
  • What types of “protected assets” are there?

    Generally speaking, any bank account holding funds that are protected by federal or state law from seizure by creditors or government agencies can be considered a protected asset. Examples include certain qualified retirement plans, but not all retirement accounts qualify, so it is important to check with your tax advisor before setting one up. Other examples include annuities and certain trusts.

    How do I know if my funds will be safe?

    As long as you comply with the rules associated with the particular type of protected asset you choose, such as making sure your contributions meet any limits established by law, then you can feel confident your money will remain in its original form and won’t be subject to taxes or other penalties.

    Are there any drawbacks to using these accounts?

    One possible drawback is that these types of accounts usually don’t provide the same level of liquidity as regular savings or checking accounts. They may also have restrictions on how often you can withdraw funds without incurring a penalty. It's important to understand the terms and conditions associated with each account before making a decision about which one is right for you.

    While creating an account that the IRS cannot touch may seemed like an attractive proposition, it's important to do your research first and make sure you thoroughly understand the terms and conditions associated with each type of protected asset before committing your money into one. Doing so will ensure you end up with an account that best fits your needs and gives you peace of mind over the safety of your funds.


    Hafsa Binte Omar

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