Editing 403(b) (section)

== Bankruptcy protection before 2005 ==

Before the passage of the bankruptcy reform act in 2005, a 403(b) that was not an ERISA plan was not accorded protected status as property that could be claimed as exempt by the debtor under the [[Bankruptcy in the United States|U.S. Bankruptcy Code]]. In ''In re Barnes'', 264 B.R. 415 (Bankr. E.D. Mich. 2001) Judge Spector held that the fixed-income annuity was not such a trust and could be reached by creditors. The variable account was held to fall within 541(c)(2) and was thus protected.<ref>{{Cite web|url=http://law.justia.com/cases/washington/supreme-court/2016/91488-5.html|title=In re Estate of Barnes (Majority)|website=law.justia.com|access-date=2016-09-02}}</ref> Under the revised bankruptcy laws, 403(b) accounts, [[Individual Retirement Account|IRA]]s, and other retirement accounts are, in general, protected from [[creditor]]s in bankruptcy.

For this reason, having an ERISA [[anti-alienation clause]]<ref name=":0">[http://finduslaw.com/employee_retirement_income_security_act_erisa_29_u_s_code_chapter_18#56 Employee Retirement Income Security Act - ERISA - 29 U.S. Code Chapter 18]. findUSlaw. Retrieved on 2016-09-02.</ref> was protective of pensions before the bankruptcy law revisions, giving those pensions the same protection as a [[spendthrift trust]]. Some critics argued that this is disparate treatment of similar pension schemes and that more consistent protection was called for. The [[United States Congress]] took this argument to heart in the [[Bankruptcy Abuse Prevention and Consumer Protection Act|2005 bankruptcy reform]].