You cannot normally encumber ERISA-qualified plans because of the spendthrift
provisions, but then again there would be no need to protect ERISA-qualified
plans. It is different with non-ERISA plans. To the extent there is exposure
for the plan, the retirement account holder’s interest can be encumbered.
Therefore, encumbering an unprotected retirement account is a worthwhile
strategy in some instances. In a few instances, we combined the international
LLC-IRA strategy with encumbering the investments in the LLC. It builds
a strong defense.