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Car refinancing is a financial tool that allows you to change the terms of your existing auto loan. It can offer benefits such as lowering your monthly car payment and reducing the interest you pay, but also comes with potential drawbacks like added costs and longer loan terms. Below, we’ll explore what car refinancing entails, its advantages and disadvantages, and alternative options to help you make the best choice for your financial situation.

What Is a Car Refinance?

Car refinancing involves replacing your current car loan with a new one, typically from a different lender. You use the new loan to pay off the balance of your existing loan, and you begin repaying the new lender based on updated terms.

The main goal of car refinancing is typically to secure better loan terms, such as a lower interest rate, reduced monthly payments, or a shorter loan term. But refinancing also comes with costs and risks, so it’s important to weigh the benefits and drawbacks carefully before you jump in.

Pros of Refinancing a Car Loan

Here’s a look at some of the key benefits of refinancing your current auto loan.

You May Reduce Your Rate

A major pro of refinancing is the potential to secure a lower interest rate. If interest rates have decreased since you took out your original loan or your credit score has improved, refinancing could help you score a better rate, and lower the total interest you pay over the loan’s life. Also, if you took out dealer financing and didn’t shop around for a loan when you bought your car, it’s possible you’re paying a higher rate than necessary. Reducing your interest rate by just two or three percentage points could help you save thousands over the life of your loan.

Recommended: Smarter Ways to Get a Car Loan

You Can Lower Your Monthly Payment

Refinancing can also lower your monthly payments, either by lowering your interest rate, extending the loan term, or both. This can free up funds in your budget for other expenses, and might provide much-needed financial relief. It can also keep you from falling behind on your payments, which can lead to late fees and negatively impact your credit.

Just keep in mind that going with a longer term can also have drawbacks, as it can lead to higher overall costs (more on that below).

You Might Be Able to Access Quick Cash

Some lenders offer cash-out auto refinance loans using your car’s equity (the value of your car minus the amount you owe on it). On top of the new loan that pays off your current one, you receive a lump sum of cash based on your equity. For example, if your car is worth $15,000 and you have $8,000 left on your loan, you might get a refinance loan for $11,000 and take $3,000 in cash. You’ll pay interest on the full amount, and cash-out refis come with some risks. As a result, you generally only want to consider this option for financial emergencies or to pay off high-interest debt.

You Can Change Your Loan Terms

Refinancing may allow you to switch from a variable interest rate to a fixed rate, offering more stability and predictability. It can also give you an opportunity to modify your loan term to better suit your financial circumstances. For example, if your income has increased, or monthly expenses have decreased, since you took out the original loan, you might be able to refinance for a shorter term and pay off your loan earlier than you originally planned.

You Can Remove a Cosigner

If your initial auto loan required a cosigner, refinancing can allow you to remove them once your financial situation improves. This can simplify your financial obligations and release your cosigner from sharing responsibility for your auto loan.

Cons of Refinancing a Car Loan

If you are debating whether to refinance your car loan, you’ll also want to keep these potential downsides in mind.

You Could Pay More in Interest

If you refinance to a longer loan term to lower your monthly payment, you’ll likely end up paying more in interest over the life of the loan. Even scoring a lower interest rate may not make up for the additional months of interest you’ll pay. While the short-term relief may be helpful, it may not be worth the added cost.

Refinancing Comes With Fees

Refinancing is generally not free. Your new lender may charge an application or origination fee, and your current lender may charge a penalty for paying off your loan early. In addition, your state may charge a fee to re-register your car or transfer the title after refinancing. These fees can diminish or eliminate the potential savings of refinancing.

You Could End Up Upside Down

Refinancing to extend the term of your car loan, or cash out equity, could put you in a position of owing more than what your car is worth. This is known as negative equity, or being upside-down on a loan. This can be problematic if you need to sell the car or if it’s totaled in an accident

For example, if you want to trade in or sell your vehicle, you’ll need to cover the difference between what the buyer/dealer pays and what you owe your lender before you can transfer the title. And if your car is totaled, your insurance agency will pay out the value of your vehicle. However, you’ll still owe the full amount of the loan (a higher amount) to your lender.

It Can Impact Your Credit Score

Refinancing triggers a hard credit inquiry, which will appear on your credit reports and can temporarily lower your credit score. While the impact is usually minor and short-lived, it’s important to consider if you’re planning other financial moves, like getting a mortgage or personal loan, in the near future.

Limited Savings for Older Loans

Generally, if you have less than 24 months remaining on your car loan, the potential savings from refinancing may not justify the effort and cost. You typically pay the most interest in the first few years of the loan, which limits the benefit of refinancing toward the end of the repayment period.

Alternatives to Car Refinancing

If refinancing doesn’t align with your financial goals, there are other ways to manage your car-related debt.

Balance-Transfer Credit Card

If your lender allows it, you may be able to transfer your auto debt to a balance-transfer credit card. If you can qualify for a transfer card with a 0% introductory rate and pay off the balance within the promotional timeframe (typically 12 to 21 months), you could save significantly on interest. You might even earn rewards from your new credit card in the process.

However, balance transfers often come with fees, usually 3% to 5% of the transferred amount. And if you fail to pay off the balance before the promotional period ends, the interest rate can jump, potentially costing you more than your original loan. This option generally works best for small loan balances and disciplined borrowers.

Personal Loan

A personal loan can be used for a variety of expenses, including paying off your car loan. These loans often come with fixed interest rates and predictable payment schedules, making them a possible alternative to auto refinancing. Going this route also gives you the option of applying for more than you need to pay off the car loan and use any additional cash you borrow for other expenses.

However, personal loans often have higher interest rates than auto loans, particularly for borrowers with average or below-average credit scores. Before opting for a personal loan, you’ll want to compare rates and calculate whether this approach would save you money compared to your existing loan.

Recommended: Personal Loan Savings Calculator

The Takeaway

Car refinancing can be a smart financial move under the right circumstances, such as securing a lower interest rate or reducing your monthly payments. However, it’s not without potential downsides, including fees, extended loan terms, and the risk of negative equity.

If refinancing doesn’t seem like the best fit for your situation, alternatives like balance transfer credit cards or personal loans may offer other ways to manage your car loan or give you more financial flexibility.

Why consider a SoFi Personal Loan? SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What are the advantages of refinancing your car?

Refinancing your car offers several advantages, such as lowering your interest rate, which reduces the total cost of the loan. It can also decrease your monthly payments by extending the loan term, improving your cash flow. In addition, refinancing provides an opportunity to change your loan terms, like switching from a variable to a fixed interest rate, or removing a cosigner from the loan. However, refinancing also comes with costs and risks, so you’ll want to weigh the pros and cons before you proceed.

When should you refinance a car loan?

You might look into refinancing your car loan when interest rates have dropped, your credit score has improved, or you need to lower your monthly payments. Refinancing can also be a good option if you want to adjust your loan terms for more stability, such as moving from a variable to a fixed interest rate. However, it’s important to consider potential fees and ensure the savings outweigh the costs before you proceed.

How soon can you refinance your car loan after purchase?

You can refinance your car loan as early as a few months after purchase, but it can be a good idea to wait at least six months to a year. This timeframe allows your credit score to recover from any temporary drop (due to the original lender’s hard credit inquiry). This also gives you time to establish consistent payments on the loan and shows potential refinance lenders that you are a responsible borrower. Also, some lenders require six to 12 months of on-time payments to even consider a refinancing application.

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Photo credit: Stocksy/Peter Meciar

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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There are at least 11 different types of personal loans out there, but one you may not have heard of yet is the share secured loan.

An accessible option for those who might not qualify for a traditional unsecured personal loan, a share secured loan uses the funds in your interest-bearing savings account as collateral — which means you can pay for a big expense without wiping out your entire savings.

Here are the basics about share secured loans — how they work, the benefits, allowed uses, requirements, and more.

What Is a Share Secured Loan?

A share secured loan, which may also be known as a savings-secured loan, cash-secured loan, or a passbook loan, is a type of personal loan.

However, unlike many other types of personal loans, these loans are — as their name implies — secured: The bank or other lending institution uses the money in your savings account, Certificate of Deposit (CD), or money market account as collateral to lower their risk level when offering the loan. This can make qualification less onerous for the applicant.

In addition to making it easier to qualify for a loan, share secured loans also allow you to fund an expensive purchase or cost without depleting your savings. They can also help you build credit, which is particularly important if your existing credit history or credit score could use some work.

Of course, like all other loans, share secured loans do come with costs and limitations of their own, and it’s worth thinking carefully before going into any kind of debt.

Recommended: What Is a Certificate of Deposit?

How Does a Share Secured Loan Work?

In order to take out a share secured loan, you must first have money saved in an interest-bearing savings account. Your savings account balance will be used as collateral. Money invested in the stock market cannot be used as collateral for this kind of loan, since it isn’t FDIC- or NCUA-insured and is at some amount of risk.

Banks that offer share secured loans will cap the loan at some percentage of the amount of money you have in your account, usually between about 80% to 100% of those funds. They may also list a loan minimum.

When you apply for the loan, the money in your savings account will be put on hold and made inaccessible to you, and the loan funds will be issued to you as a check or directly deposited into your checking account.

You’ll then be responsible for paying the loan back in fixed monthly installments over a term that may last as long as 15 years, and which will include an interest rate of about 1% to 3% more than your savings account earns. For example, if you secured the loan with a money market account that earns 2.00% APY, your loan interest rate might be 3.00% to 5.00%. Typically, share secured loans come with lower APRs than unsecured loans, since they’re less risky for lenders.

Once the loan is paid off, you’ll regain access to the funds in your savings account, which will still have been earning interest the entire time.

Benefits of a Share Secured Loan

It may seem a bit strange to borrow money you already have, which is pretty much how a share secured loan works. But there are certain benefits to this approach if you need to pay down an expensive bill or fund a costly project up front.

Cost

Of the different types of personal loans that are available, share secured loans have some of the lowest interest rates — precisely because the bank has your money as collateral if you don’t repay the loan.

Still, even if the loan interest rate is only a few percentage points over the amount of money you earn in interest on your savings account, you’ll pay more than you would if you were able to use cash to fund your expense.

Eligibility Requirements

One of the biggest benefits to share secured loans is their relatively lenient eligibility requirements. Since they are secured, lenders consider them less risky.

If your credit score is on the low end of the range, you may not qualify for other types of personal loans, and if you do qualify, their interest rates may be high (as in the case of a payday loan or pawnshop loan). A cash-secured loan offers an accessible and relatively inexpensive alternative.

Flexible Repayment Options

With a share secured loan, you can often choose a repayment term that suits your needs and financial plans. Many lenders offer terms within the 36- to 60-month range.

Credit Building

Finally, one of the most important benefits of share secured loans is their power to help you improve or build your credit, which can help you qualify for other types of loans in the future. Credit building and credit improvement are two of the best reasons to seriously consider a share secured loan to fund an expense you might otherwise be able to pay for in cash.

Are Share Secured Loans a Bad Idea?

There are some risks to using your existing funds as collateral to go into debt. Namely, if you fail to pay back the loan, the lender can seize the funds in your savings account — and you’ll still be responsible for repaying the loan, which can have a negative effect on your credit score.

Additionally, even a low-cost loan isn’t free, and depending on the loan amount and its term, you may end up spending a significant amount of cash on interest over time.

That said, there are times when a share secured loan may make sense:

•   You’re a first-time borrower. A share secured loan offers you access to credit without requiring you to have a lengthy credit history.

•   Your credit is poor. By making consistent payments on the loan, you can rebuild and repair your credit.

•   You need help paying for an emergency expense. A share secured loan helps you cover unexpected bills without depleting your savings.

Common Uses of a Share Secured Loan

Share secured loans are used for a wide variety of reasons and share many of the common uses of a personal loan.

For example, a borrower might use a share secured loan to cover an unexpected medical bill or car repair payment. Share secured loans can also be used to cover moving expenses, home improvement costs, or even debt consolidation to pay off other forms of high-interest loans, like credit cards, which could help you get back on track financially.

Who Is a Share Secured Loan Best For?

While it’s important to consider all your options before going into any form of debt, a share secured loan might be an attractive choice for borrowers who already have a substantial amount of cash in savings but might not have the liquidity to pay for a large expense comfortably.

Additionally, if you have a poor or fair credit score, a share secured loan may help you qualify for the funding you need while also building up your credit score over time.

Qualifying for a Share Secured Loan

The good news about qualifying for a share secured loan is that so long as you have the money in your account saved up, this financial product is very accessible. Many share secured loans are available for borrowers with poor credit or even no credit history — though it’s always a good idea to shop around and compare rates and terms available from different lenders.

Share Secure Loans: Alternative Loan Options

While share secured loans can be a good option for certain borrowers, there are other alternatives worth considering as well:

•   A secured credit card works in a similar way to a share secured loan. You’ll only be able to use as much cash as you put on the card, and it can help you build credit.

•   If you don’t have substantial savings built up quite yet, a credit-builder loan might work for your needs, though it’s likely to come at a higher interest rate since there’s no collateral involved.

•   A guarantor loan, on which someone cosigns with you and agrees to repay the debt if you default, may make it possible for you to qualify for better terms than you otherwise would with poor to fair credit.

Other Types of Secured Loans

Share secured loans are far from the only type of secured loans out there. Any loan that involves some form of collateral is considered a secured loan. Some of the most common forms of debt fall into this category, such as:

•   Mortgages, which utilize the home and property as collateral.

•   Auto loans, which utilize the vehicle as collateral.

•   Secured credit cards, as mentioned above, which require cash collateral.

Recommended: Using Collateral on a Personal Loan

The Takeaway: Is a Personal Loan Right for You?

Share secured loans are a secured type of personal loan that can be used for a wide variety of expenses. Share secured loans are available for low-credit borrowers, so long as they have substantial cash savings — but there are other options available, too.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

Are share secured loans a bad idea?

Share secured loans are not an inherently bad idea, but they can cost the borrower more in interest than if they had paid cash for the purchase.

Why would someone take out a share secured loan?

The reasons people take out a share secured loan are much the same as reasons for taking out a personal loan: medical expenses, moving costs, home repairs and improvements, and more.

How do share secured loans work?

The borrower uses funds in their interest-bearing savings account as collateral to secure the share secured loan. If they fail to repay the loan, the lender can seize the savings account as repayment on the loan.

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Photo credit: iStock/Julia_Sudnitskaya

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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There isn’t a simple yes or no answer as to whether your retirement accounts can be garnished. The Employment Retirement Income Security Act (ERISA) protects certain retirement accounts from garnishment if you’re sued by a creditor. The Act does not extend to non-qualified accounts like IRAs. However, those accounts do enjoy certain protections in bankruptcy.

The IRS may be able to garnish or take your 401(k) funds, however, if you owe back taxes. The IRS can also dip into your IRA or any self-employed retirement accounts you own to collect on a past due tax bill. If you’re worried about being sued by a creditor or running afoul of the IRS, it’s important to know when retirement accounts may be subject to garnishment.

What Does Garnishment Mean?

Garnishment is a legal process in which one entity takes money from another under the authority of federal or state law to satisfy a debt. Both wages and bank accounts can be subject to garnishment in connection with debt collection lawsuits. A court order may be necessary to enforce a garnishment agreement.

Federal law can limit which wages or bank account deposits are exempt from garnishment and under what conditions. For example, if you receive Social Security benefits, they may be exempt if you’re sued for unpaid credit card debt. Those benefits are not bulletproof, however. And ignoring how your funds could be imperiled could be a critical retirement mistake.

The Social Security Administration (SSA) can withhold some of your benefits if your state presents a garnishment order for unpaid alimony, child support, or restitution. The Treasury Department can also withhold some of your benefits to offset unpaid tax debts. Generally, a garnishment order cannot be lifted until the debt in question is satisfied.

Can Retirement Accounts Be Garnished?

Retirement accounts can be garnished but there are specific rules that apply in determining which accounts are subject to garnishment. This is where it’s important to understand the different types of retirement plans.

As mentioned, certain retirement accounts are protected by ERISA. They’re usually referred to as qualified retirement plans. Examples of ERISA plans include:

•   Profit-sharing plans

•   401(k) plans

•   Money purchase plans

•   Stock bonus plans

•   Employee stock ownership plans

•   Defined benefit plans, including pensions

Generally speaking, money held in ERISA plans are protected from garnishment by creditors. The amount you can protect is unlimited, so whether you’ve saved $1,000 or $1 million in an ERISA plan, it’s safely out of reach of creditors.

There is an exception made in cases where the account owner is ordered by a court to pay restitution to the victim of a crime. In that instance, a federal ruling has deemed it acceptable to allow garnishment of ERISA plans to make restitution payments.

Non-qualified plans are not covered by ERISA protections. Non-qualified plans can include deferred compensation plans and executive bonus plans, but traditional and Roth IRAs can also fall under this umbrella.

The good news is that state law can include provisions to protect IRAs from garnishment. So if you’re sued for a $20,000 credit card debt, your creditor might not be able to touch any money you’ve stashed in a traditional or Roth IRA. Federal law also protects your online IRA or other type of IRA from garnishments relating to unpaid debts if you file for bankruptcy protection.

Reasons Your 401(k) May Be Garnished

It’s not common for a 401(k) to be garnished, thanks to ERISA. But there are some scenarios where it can happen. Here are some of the reasons why a 401(k) can be garnished.

You Have a Solo 401(k)

A solo 401(k) or one-participant 401(k) is a type of 401(k) plan that’s designed for people who are self-employed or run a business and have just one employee who is their spouse. These plans are not subject to ERISA rules, so they could be vulnerable to creditors which may include garnishment for unpaid debt.

Even though a solo 401(k) isn’t protected at the federal level, your assets could still be safe under state law. As mentioned, many states exempt retirement accounts from creditor garnishments. The exemption limit may vary from state to state, though some states protect 100% of retirement assets.

You Owe Child Support or Alimony

If you’re ordered to pay child support or alimony and fail to do so, the court could order you to turn over some of your 401(k) assets to make those payments. If you’re getting divorced, then your spouse may be able to claim part of those assets as part of the settlement.

They’ll generally need a Qualified Domestic Relations Order (QDRO) to do so. This document directs the plan administrator on how to divide 401(k) assets between spouses, according to the terms set by the divorce agreement.

You Owe Restitution

As mentioned, retirement accounts can be garnished in cases where you’re ordered by a court to pay restitution to someone. For example, say that you were negligent and injured someone in a car accident. The court might order you to pay restitution to the injured person.

If you don’t arrange another form of payment, the court might greenlight garnishment of your 401(k). The amount that can be garnished must reflect the amount of restitution you were ordered to pay.

Can the Government Take My 401(k) or IRA?

The federal government, specifically the IRS, can garnish your retirement accounts. So when can the IRS take your 401(k) or IRA? Simply, if you owe unpaid tax debt and have made no attempt to pay it. Garnishment and property liens are usually options of last resort, as the IRS might give you an opportunity to set up an Installment Agreement or make an Offer In Compromise to satisfy the debt.

Before the IRS can garnish your retirement accounts for unpaid taxes, it has to provide you with adequate notice. That means sending a written letter that specifies how much you owe. If you don’t respond to this notice, the IRS will send out a final notice giving you an additional opportunity to pay your taxes or schedule a hearing.

Should you still do nothing, that opens the door for the government to garnish your 401(k), IRA, and other retirement accounts. Note that the IRS can also garnish your Social Security retirement benefits but not Supplemental Security Income (SSI) benefits.

State tax agencies can seek a judgment against you for unpaid debt. While they can obtain a court order requesting payment, they cannot force you to withdraw money from a retirement account to pay. You could, however, still be subject to wage garnishments or bank account levies.

What Happens When Your Retirement Account Is Garnished?

When a retirement account is garnished, money is withdrawn and handed over to the recipient, which may be a creditor or the government. At that point, there may be nothing you can do to get that money back.

You should receive notification of the garnishment before it happens. That can give you time to make alternate arrangements to pay the debt. You could try to do that after the garnishment moves ahead, though it might be difficult to retrieve the money.

For example, if your 401(k) is garnished to pay back taxes you could contact the IRS to see if you might be able to reverse it by paying the tax debt, setting up a payment plan, or negotiating an Offer In Compromise. You could also attempt to make a claim for financial hardship which may help you to get the garnishment reversed.

Tips for Avoiding 401(k) Garnishment

Having your retirement accounts garnished can be unpleasant to say the least and it’s best avoided if possible. If you’re concerned about your 401(k) or other retirement accounts being garnished, here are some things you can do to try and prevent that from happening.

Pay Your Taxes on Time

One of the simplest ways to avoid a garnishment is to pay your federal taxes on time. If you’ve filed your return but you don’t have the money to pay what’s owed in full, you can potentially work out a payment agreement with the IRS, take out a loan, or charge it to a credit card.

You could also borrow from your 401(k) to satisfy unpaid tax debts. Using your 401(k) to pay down debt is usually not advised, since it can shrink your overall wealth and you might face tax penalties. However, you may prefer it to having the money taken from your account by the IRS.

Don’t Ignore IRS Notices

If the IRS sends you a letter requesting payment for unpaid taxes, don’t ignore it. Doing so could lead to a garnishment if the government makes additional attempts to get you to pay with no success. If you’re questioning whether the amount is accurate you may want to contact the IRS for verification or consult with a tax attorney.

Keep Up With Domestic Support Payments

When you’re ordered by a judge to pay child support or alimony, it’s important that you make those payments in a timely manner. As with back taxes, failing to pay could result in your 401(k) being garnished to satisfy the terms of the order in keeping with the divorce agreement or decree.

The Takeaway

There are certain retirement mistakes that are best avoided and having your savings garnished is one of them. Knowing when retirement accounts can be garnished can help you to preserve your assets.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help build your nest egg with a SoFi IRA.

FAQ

Can the government legally take your 401(k)?

The federal government can garnish your 401(k) if you owe unpaid tax debts and all other attempts at collection have been unsuccessful. The IRS can also place levies against your property, including homes, vehicles, and other assets to force you to pay what’s owed.

Can a 401(k) be garnished by the IRS?

Yes, the IRS can garnish your 401(k) if you don’t pay federal taxes. Generally, the IRS will give you sufficient notice beforehand so that you have time to either pay the taxes owed or make alternate arrangements for handling your tax bill.

How do I protect my 401(k) from the IRS?

The simplest way to protect a 401(k) from the IRS is to pay your federal taxes on time and not disregard any notices or requests for payment you receive from the government. If you can’t pay in full, you might be able to set up a payment plan or an Offer In Compromise to avoid 401(k) garnishment.

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Photo credit: iStock/Charday Penn

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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