My insurer said if anyone else in my family causes a car accident, I could lose everything — including my savings. Are my retirement accounts protected?

An article on Clark.com recounts Jennifer’s concerned call with the finance website.

“My auto insurance provider has scared me that any future car accident at the fault of anyone in my household could result in me losing everything, including my savings,” she said.

Hearing those words from an insurance rep may sound chilling, but the question remains whether such a retirement account seizure is possible in the first place. And the answer, as with so many things involving money and misfortune is: it depends.

Looking at things from a legal angle, some retirement accounts offer more protection than others. In simple terms, an employer-sponsored 401(k) offers a better shield than any IRA, be it Roth or traditional.

Here’s how that breaks down when it comes to keeping your nest egg safe.

How ERISA safeguards (many) retirement accounts

First, let’s decode the acronym ERISA, which represents the cornerstone of retirement account security. Turning back the clock half a century, the Employee Retirement Income Security Act of 1974 created protections for retirement accounts established in private industry.

ERISA requires employers to set minimum standards for participation, vesting, benefit accrual and funding. It also protects your employer-sponsored retirement account from creditors, bankruptcy proceedings, civil lawsuits — and even employers themselves. For example, If a business goes bust your ERISA-qualified retirement plan would not be affected. The federal government’s Pension Benefit Guaranty Corp. shields those funds.

There are important exceptions, though. Plans offered by governmental entities (such as state pensions) or churches fall outside ERISA protections. And if you work for a small business, you may instead have what’s known as a SIMPLE (or Savings Incentive Match Plan for Employees) IRA plan.

And where IRAs are concerned, the lack of federal ERISA protection leaves it up to individual states to decide the matter. And that’s where things can get mighty complicated.

'Kicking and screaming' into IRA land

Let’s revisit Jennifer’s case. She lives in Georgia, where only certain accounts are protected — and only up until a certain point. This chart from Blake Harris Law compiles the guidelines for all 50 states, and when you check out the Peach State, you’ll see that things aren’t always peachy.