protection of IRA’s from creditors and bankruptcy
I have a client who has 3 traditional IRA’s, they are filing bankruptcy in the next 60 days. What protection do they have from creditors.
I have a client who has 3 traditional IRA’s, they are filing bankruptcy in the next 60 days. What protection do they have from creditors.
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Permalink Submitted by Jose Morales on Fri, 2016-10-28 17:11
There is no real straightforward answer to this. Various factors include whether or not any of the funds originated from an employer sponsored plan covered under ERISA, and whether you are discussing protection at the federal level or state level (which also requires knowing which state of residence the person in question lives in)
Permalink Submitted by Alan - IRA critic on Fri, 2016-10-28 18:53
What state does the client live in?
Permalink Submitted by Jon Heller on Mon, 2016-10-31 13:10
The client lives in Wisconsin and the IRA’s were direct rollovers from 401ks.
Permalink Submitted by Alan - IRA critic on Mon, 2016-10-31 19:54
Except for certain owner dominated plans such as a SEP or SIMPLE IRA, Wisconsin protects IRAs without a dollar limit.