Are IRAs protected from creditors?
I know 401(k) are protected from the creditors but not sure if IRAs are as well. Does it vary from state to state?
I know 401(k) are protected from the creditors but not sure if IRAs are as well. Does it vary from state to state?
Permalink Submitted by Alan Spross on Tue, 2009-09-08 21:47
Yes, it does vary. See att’d link, but note that this info is now over 2 years old:
http://www.assetprotectionbook.com/state_resources.htm
These state statutes work in conjunction with the federal bankruptcy Act which protects IRA accounts other than inherited IRAs in a bankruptcy filing. Most states provide better protection than the federal protection, but not all of them.