are IRA accounts protected from creditors?
I know IRA accounts can be blocked by court due to child support or alimoney but what about creditors.
I thought it was protected from creditors. please advise
I know IRA accounts can be blocked by court due to child support or alimoney but what about creditors.
I thought it was protected from creditors. please advise
Permalink Submitted by Alan Spross on Tue, 2011-12-20 17:10
IRA creditor protection varies by state. Some states provide full protection and others only enough to sustain current living costs. If you are in a state with poor creditor protection for IRAs, the federal bankruptcy protection comes into play, but you must file bankruptcy to get the protection. For the bankruptcy protection, rollover IRAs are protected without limit and other IRAs are protected up to 1 million.
But none of the above tools limits spousal settlements or IRS liens on IRA accounts.