Re:Maybe Warren Buffett Is Warning Us About Something
by dragonwriter on Wednesday August 28, 2019 @11:43AM
(#20820898)
> Read the fine print and you will find "FBO" (For Benefit Of). The tax code makes it technically owned by the government, but provided for your benefit.
No, the assets in the fund are owned by the plan administrator, and held for your benefit; this is in some ways better than you owning them, as it makes them generally immune to seizure/garnishment by creditors other than the IRS, and only by the IRS to the extent you could take a no-penalty distribution.
That's a pretty basic error in a rant about how everyone else doesn't understand the basics...
No, the assets in the fund are owned by the plan administrator, and held for your benefit; this is in some ways better than you owning them, as it makes them generally immune to seizure/garnishment by creditors other than the IRS, and only by the IRS to the extent you could take a no-penalty distribution.
That's a pretty basic error in a rant about how everyone else doesn't understand the basics...