In the Tax Book (tab 14 page 9) I read the Income From Discharge of Indebtedness. I need to know if retirement plans (401K, IRA, ect) are or are not part of making the taxpayer insolvent?
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a quip about having money
>>I need to know if retirement plans (401K, IRA, ect) are or are not part of making the taxpayer insolvent?<<
I was going to make a quip about having money in a retirement fund is the opposite of insolvency. Then I remembered that in these days of Enron accounting, real estate in IRA's, ISO/ESOP/AIPAC/ETC., a lot of good people are discovering that trusting in their retirement plan leads to bankruptcy after all.
Well, to the extent they can salvage anything, retirement funds are an asset available for support and offset liabilities on the balance sheet. (I think there may be some authority for reducing the stated value of the asset by the penalty for early withdrawal.)
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