Are IRA accounts exempt in a bankruptcy filing? 28 Answers as of August 05, 2011

Typically IRAs are fully exempted. As long as you have not made contributions to it annually that exceed the limit per your annual income.

IRA's are exempt in a bankruptcy filing.

If the IRA is reasonably needed for retirement it will be exempt.

I have always gotten IRAs exempt from bankruptcy in New York State, including ones with substantial balances. They are generally safe in a bankruptcy provided the payments into it were not made on the eve of bankruptcy to try to shelter an amount of money from the trustee which he could otherwise grab for the creditors.

Section 522 of the Bankruptcy Code states: (n) For assets in individual retirement accounts described in section 408 or 408A of the Internal Revenue Code of 1986, other than a simplified employee pension under section 408(k) of such Code or a simple retirement account under section 408(p) of such Code, the aggregate value of such assets exempted under this section, without regard to amounts attributable to rollover contributions under section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal Revenue Code of 1986, and earnings thereon, shall not exceed $1,000,000 in a case filed by a debtor who is an individual, except that such amount may be increased if the interests of justice so require.

IRA accounts and most retirement accounts are generally considered exempt in bankruptcy by statute under Section 522(b)(2) and (d)(10) and (12). If you have a few million dollars in there, there could potentially be a good faith issue raised (not saying they would win), but most people don't have as much as that. Just make sure the IRA or retirement plan is ERISA qualified or falls under one of the specified sections of the Internal Revenue Code - ask your plan administrator. You don't have to walk out at the end of a bankruptcy totally broke - that defeats the concept of getting a "fresh start."

IRA accounts up to 1 million dollars are exempt.

IRA's are generally exempt when filing bankruptcy. (remember OJ Simpson, that's how he still has money).

Yes, IRAs are typically exempt. This response does not create an attorney-client relationship. Unless you are already a client of Sentinel Law, P.A., pursuant to an executed attorney-client agreement, you should not use, interpret, or rely on this response as legal advice or opinion. Do not act on any information in this response without speaking to an attorney, as there may be details surrounding your situation that would give rise to further explanation or clarification.

Generally IRA accounts are exempt. THere are exceptions to recent or unusual contributions or very large IRA's

Yes. They're exempt.

In Oregon, IRA and 401(k) accounts are 100% exempt from the bankruptcy. You get to retain the entire amount.

Most but not all retirement accounts in Georgia are safe in a bankruptcy IF they are properly scheduled and exempted. This is not something you can analyze yourself. An attorney needs to get details, and, even assuming you can keep it, incorrectly scheduling and exempting it can be a problem. So your IRA likely is safe. Use a lawyer to make sure.

Yes. That is one bright spot in bankruptcy law.

If the funds were your earnings and are in your name as qualified retirement accounts under the IRS Code, they are exempt from the reach of the trustee. The courts are split on whether the bankruptcy law allows an inherited IRA to be exempt. Check with a bankruptcy attorney in your state.

Yes, under both CA exemption schemes, your IRA should be exempt and protected from the bankruptcy. Double check the balance in your IRA and make sure it falls within the confines of that exemption. Unless you have over a million dollars in there, you are probably ok.