A:

Your IRA is protected from bankruptcy up to $1 million. However, in all other cases, state law determines whether any protection exists and the level of protection.

It is best to consult with a local attorney to determine the types of protection offered in your state.

To learn more, see Bankruptcy Protection For Your Accounts and Build A Wall Around Your Assets.

Question answered by Denise Appleby, CISP, CRC, CRPS, CRSP, APA

RELATED FAQS
  1. Is my IRA protected in a bankruptcy?

    Learn what types of IRA accounts are protected from creditors in a bankruptcy and to what dollar value each type of IRA is ... Read Answer >>
  2. Can my IRA be garnished for child support?

    Find out about the different federal and state protections for IRA funds, and when your IRA savings can be garnished to satisfy ... Read Answer >>
Related Articles
  1. Retirement

    How Does Bankruptcy Affect Your IRA?

    Since 2005, money in your IRA can be protected if you are forced to file for bankruptcy.
  2. Retirement

    How To Protect Your Retirement from Lawsuits

    Getting sued is one of those things that no one really plans on. Be proactive and make sure your hard-earned retirement is safe from lawsuits.
  3. Taxes

    How to Hire a Bankruptcy Lawyer

    How do you find the right bankruptcy lawyer? What you should look for to determine the right attorney for you.
  4. Financial Advisor

    Bankruptcy Protection For Your Accounts

    Will the plan assets you've worked hard for be safe if you experience a personal financial crisis?
  5. Financial Advisor

    Should You File For Bankruptcy?

    Find out how to determine whether this option will help or hurt your financial situation.
  6. Taxes

    When To Declare Bankruptcy

    When is bankruptcy the best or only route– and when is it better to look at alternative solutions? And should you always hire a lawyer?
  7. Retirement

    How Advisors Can Protect Inherited IRAs

    A new Supreme Court ruling has some financial advisors rushing to set up trusts to help protect inherited IRAs. Is that necessary?
  8. Taxes

    How To Survive A Bankruptcy Filing

    Learn how to make filing for bankruptcy less painful so you can successfully rebuild your financial life.
  9. Insurance

    How You Can Protect Your Assets With Insurance

    Here's how carrying the proper levels of auto and umbrella insurance will keep your assets protected, no matter your net worth.
  10. Personal Finance

    What You Need To Know About Bankruptcy

    Don't choose this last-resort option until you learn how it will affect your future.
RELATED TERMS
  1. Protective Stop

    A strategy designed to protect existing gains or thwart further ...
  2. Dilution Protection

    A provision that seeks to protect existing shareholders or investors ...
  3. Bankruptcy Abuse Prevention And Consumer Protection Act - BAPCPA

    Legislation enacted by President George W. Bush in 2005 that ...
  4. Bankruptcy Court

    What is bankruptcy court?
  5. Call Protection

    A protective provision of a callable security prohibiting the ...
  6. Consumer Financial Protection Act

    An amendment to the National Bank Act designed to identify and ...
Hot Definitions
  1. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  2. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  3. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  4. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  5. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  6. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
Trading Center