Creditor Protection Related
Hello –
If a client in NJ has $115k in a Rollover IRA (from a company 401k Plan) and about $10k in a Traditional IRA funded w/ contributions, given these values is there any reason not to combine the two?
And, if combined, does it matter which Acct. remains and which is eliminated?
Thank you!
Jason
Permalink Submitted by Alan - IRA critic on Sat, 2022-08-27 00:22
NJ protects all IRA balances from creditors, so unless client plans to move to a state that does not and client would have to depend on the federal BK Act for creditor protection in bankruptcy and would like to keep the rollover IRA out of the 1.5mm creditor protection limit for contributary IRAs, they can be combined and it would not matter which was the surviving account.