Aliant is excited to announce that Jacob Stein, Esq., Global Chair of the Private Client Practice, has published a significant article in both Bloomberg Tax and the Daily Journal on California’s new retirement plan protections law set to take effect in January 2025. This law, which represents a substantial shift from current regulations, introduces limitations on the protections previously afforded to assets held in tax-qualified retirement plans—impacting California residents’ ability to shield their retirement savings from creditor claims.
In the article, “California’s New Retirement Law Won’t Be a Boon for State Debtors,” Mr.Stein examines the far-reaching implications of this new legislation on retirement planning in California. He highlights key changes, such as the introduction of a “means test” for tax-qualified plans, mirroring limitations that currently only apply to IRAs in California. These adjustments will allow judges to determine how much of a debtor’s retirement savings may be exempt from creditors, significantly impacting residents with substantial savings.
Additionally, Mr.Stein discusses the intersection between California’s state law and federal ERISA protections. He provides strategic recommendations, such as rolling over retirement funds into ERISA-qualified plans to maintain exemption status for as long as the assets remain in the plan. For residents already taking distributions, Stein suggests alternative protective measures, underscoring the need for proactive planning in light of these legal changes.
To gain a deeper understanding of this upcoming law and strategies for navigating it, read Jacob Stein’s full articles on Bloomberg Tax and Daily Journal. Aliant is committed to providing clients with insights into new developments that affect their financial security and asset protection strategies.
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