2025-2028 contributory IRA federal bankruptcy idexed number
Currently contributory IRAs have federal bankruptcy protection up to $1,512,350. That will be indexed on April 1, 2025. Then it will remain the same unti until April 1, 2028. Has anyone heard what the new number will be starting April 1, 2025?
Permalink Submitted by Alan - IRA critic on Mon, 2025-03-17 17:09
Apparently not released yet. I would expect that it will increase to at least 1.75 mm, given the 3 year CPI-U increase.
Of course, the majority of states provide full creditor protection for owned IRAs.
Permalink Submitted by Alan - IRA critic on Mon, 2025-03-24 18:54
The inflation adjustment has now been announced for 2025-2028. It is 1,711,975.
This is for contributary IRAs, not rollover IRAs that have no dollar limit. If funds are commingled, it’s not clear whether there will be any source tracing in bankruptcy.