Understanding the Basics

Beyond the Basics: Bulletproofing Your Savings

How Company Retirement Plans Protect Your Savings

Generally, your retirement benefits are protected in such a way that no one other than you will be allowed an interest in your benefit. There are certain exceptions to this rule, such as a divorce settlement where a qualified domestic relations order is in effect. This is one of the few times that another individual would have a right to a portion of your retirement benefit. In addition, although a qualified retirement plan is exempt from the claims of general creditors in a bankruptcy proceeding, the exclusion does not apply to a federal tax lien.

Your retirement benefit is also protected in another way. If you have a defined benefit plan, your employer must pay an annual insurance premium that will provide you with a guaranteed benefit in case of company bankruptcy. This guaranteed benefit applies to defined benefit plans only and the maximum monthly benefit amount is capped, so you may not receive your full benefit.

Will Disaster Wipe Out Your Life Savings? Know Where and How to Get Help

Many large employers include services in their benefits package that can help the employee get immediate assistance to handle problems in and out of the workplace. A small problem today left unaddressed can turn into a major problem tomorrow with a pretty high price tag—your personal retirement savings.

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Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC., Member FINRA / SIPC . Wauchula State Financial Services is a trade name of the bank. Infinex is not affiliated with either entity. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits of or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.