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Frequently Asked Questions about Workers' Compensation and Social Security Disability

 


Q:

CAN MY SOCIAL SECURITY PENSION AND 403B BE GARNISHED? 

A: Probably not. Social Secuirty Section 207 of the Social Security Act (42 U.S.C. 407) protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:

1.  To enforce child support and/or alimony obligations

2.  Allows benefits to be levied to collect unpaid Federal taxes

3.  Allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;

4.  Allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency

5.  Authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.

However, if you are co-mingling (mixing up) your Social Security money in an account with other money then it may get garnished unless you can show that it is specifically Social Security money. I suggest that if you have someone seeking to collect a debt (creditor) you advise them you have your Social Security money and unless they meet one of the five exceptions above then they are out of luck.

Check out more information at http://www.markhofflaw.com/or http://www.socialsecurity.gov



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