Will my 401K and IRA be exempt from bankruptcy?

Will my 401k and Individual Retirement Arrangement be exempt from my bankruptcy?

Share |

Answered By: Lorene Lynn Mies, APLC

Yes and no. Your 401K is protected 100% however it depends on what kind of IRA you have. A simple IRA is not protected, only a Roth IRA. To protect any type of retirement savings in must be ERISA qualified.

Answer Applies to: California
Replied: 8/27/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Fasel, Fasel, & Nefulda, LLP

Generally, 401k plans and IRAs are not part of the Bankruptcy Estate and thus subject to the bankruptcy courts jurisdiction, which means that the trustee cannot take it to pay creditors under any circumstances. Even if they are part of the bankruptcy estate, most retirement plans are exempt, which means the debtor gets to keep them anyway. To discuss further, please contact me for a free consultation.

Answer Applies to: California
Replied: 8/17/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: David Nelson

401k plans are protected in Bankruptcy. An IRA is protected most of the time.

Answer Applies to: California
Replied: 8/17/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Offices of Michael J. Berger

Yes, if you have not been using it like a checking account (taking money back and forth) and if the amount in the IRA is reasonably necessary for your retirement. For specific advice applicable to your situation, call me or write to me with your specific facts.

Answer Applies to: California
Replied: 8/17/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Kevin Michael Muldoon

Yes, your 401k and IRA accounts are protected.

Answer Applies to: California
Replied: 8/16/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Diefer Law Group, P.C.

Yes, generally these plans are protected.

Answer Applies to: California
Replied: 8/16/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.