It’s seems the government can garnish a criminal’s 401(k) to pay restitution, according to an appeals court.
A man who pled guilty after embezzling money from his employer was sentenced to prison and forced to pay monetary restitution under the Mandatory Victims Restitution Act.
While he objected to the government garnishing his 401(k) to satisfy the restitution order, arguing that federal pension law protects workplace retirement plan accounts against claims by third parties (this was how O.J. was able to keep his fortune).
The court instead sided with other appellate courts, stating that federal pension law
doesn’t bar the seizure of 401(k) funds in these circumstances
Frank, 4th Cir.