Just wondering about this!

[DYLAN150]

If you have social security funds in a bank account, by law it's suppose to be exempt funds. (protected from garnishment/levy) Here is my question. When you withdrawal the funds when does it become not exempt or protected?
Once it hits your pocket?

[daylate]

I think it is exempt forever. the only issue is how would you prove it was ss $? By the time it gets in your pocket I wouldn't worry about it.

[DYLAN150]

daylate: That's just it, what if you purchased something with social security funds and could prove it, would it be exempt?

[WhatMoney]

daylate: That's just it, what if you purchased something with social security funds and could prove it, would it be exempt?

It depends on whether the item you purchased was exempt under your States' exemption law for judgments. If you purchase a non-exempt asset with exempt funds you have converted an exempt asset, your SS funds, to a non-exempt asset.

Social Security and Veteran Administration Benefits are exempt assets. These assets retain their character unless they are used for long term savings or to purchase non-exempt assets.

Washington state exemptions: http://apps.leg.wa.gov/rcw/default.aspx?cite=6.15.010