Permalink Submitted by Alan Spross on Wed, 2009-10-21 18:10
CA provides a very limited amount of IRA protection. It is limited to the amount deemed reasonably necessary for support. That opens up a number of areas of subjective judgement as to what amount is reasonable, numbers of family members whose support is considered, etc. CA has opted out of certain portions of the federal bankruptcy protection and substituted state provisions, although there are some federal provisions that the state cannot override. I can’t tell you which provisions of the federal law remain, but the amount of protection is severely reduced.
Permalink Submitted by mk foss on Thu, 2009-10-22 16:49
Qualfied plans have more protection than IRAs in CA except for Keogh plans or other qualifed plans (including 401(k)) that only cover the business owner and spouse. Those plans have the same protection as an IRA – limited to the amount reasonably necessary for support.
Permalink Submitted by Bob Foland on Fri, 2017-11-17 19:02
Where can I find authoritative information on whether IRAs are protected from creditors in a given state? Specifically, I’m interested in Colorado, but I would like info on a few other states as well.
Permalink Submitted by Alan Spross on Wed, 2009-10-21 18:10
CA provides a very limited amount of IRA protection. It is limited to the amount deemed reasonably necessary for support. That opens up a number of areas of subjective judgement as to what amount is reasonable, numbers of family members whose support is considered, etc. CA has opted out of certain portions of the federal bankruptcy protection and substituted state provisions, although there are some federal provisions that the state cannot override. I can’t tell you which provisions of the federal law remain, but the amount of protection is severely reduced.
Permalink Submitted by mk foss on Thu, 2009-10-22 16:49
Qualfied plans have more protection than IRAs in CA except for Keogh plans or other qualifed plans (including 401(k)) that only cover the business owner and spouse. Those plans have the same protection as an IRA – limited to the amount reasonably necessary for support.
Permalink Submitted by Bob Foland on Fri, 2017-11-17 19:02
Where can I find authoritative information on whether IRAs are protected from creditors in a given state? Specifically, I’m interested in Colorado, but I would like info on a few other states as well.
Permalink Submitted by Alan - IRA critic on Fri, 2017-11-17 19:16
Here is one asset protection site: https://www.assetprotectionbook.com/forum/viewtopic.php?f=142&t=1566