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 taken in a lawsuit?

    Find out how and when your IRA can be taken in a lawsuit, including why IRAs are not fully protected like 401(k) plans and ... Read Answer >>
  3. Can my 401(k) be seized or garnished?

  4. Can either a SEP IRA or a SIMPLE IRA be attached in a bankruptcy or malpractice action, ...

    State law determines whether or not an IRA, including SEP, SIMPLEs and Roth IRAs, can be attached in any bankruptcy proceedings, ... Read Answer >>
  5. 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 >>
  6. Are qualified retirement plans protected from creditors?

    Learn how to protect your retirement assets from creditors. Certain provisions provide for exemption of retirement assets ... Read Answer >>
Related Articles
  1. Retirement

    Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  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. Retirement

    Bankruptcy Protection For Your Accounts

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

    Should You File For Bankruptcy?

    Find out how to determine whether this option will help or hurt your financial situation.
  5. Financial Advisor

    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?
  6. Investing

    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

    What You Need To Know About Bankruptcy

    Don't choose this last-resort option until you learn how it will affect your future.
  8. Markets

    How To Survive A Bankruptcy Filing

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

    11 Things You May Not Know About Your IRA

    These little-known features will help you get the most out of your retirement savings.
RELATED TERMS
  1. Asset Protection

    The concept of and strategies for guarding one's wealth. Asset ...
  2. Protective Stop

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

    A provision that seeks to protect existing shareholders or investors ...
  4. Call Protection

    A protective provision of a callable security prohibiting the ...
  5. Inflation Protected

    The types of investments that provide protection against inflation ...
  6. Consumer Financial Protection Act

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

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center