QUESTION
If I choose to have my portion of participants 401k distribution rolled over into an IRA, will my funds be exempt from judgment creditors?
Asked on Aug 18th, 2014 on Bankruptcy - Washington
More details to this question:
QDRO approved, but chapter 7 is not filed yet. I need a retirement fund as I am 51 years old and not yet working. Income for self and son is child and spousal support. I’m not sure how to protect the only asset I acquired after a 13 year marriage. It was for $38,900.
9 ANSWERS
Retirement benefits established 2 years prior to bankruptcy are exempt. Although there is no Nebraska case law on whether rolled over QDRO funds are exempt, I believe they are exempt under the Nebraska exemptions. Discuss this with a qualified bankruptcy attorney, before filing a bankruptcy petition.
Answered on Aug 21st, 2014 at 12:03 PM
Rolling over a QDRO into a qualified IRA is a pretty simple thing to have done if you contact the right people to handle this. You may want to have a conversation with your bank manager or an investment advisor you trust.
Answered on Aug 20th, 2014 at 11:12 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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All tax exempt retirement funds are exempt from creditors and in bankruptcy (there are some rare exceptions, so consult your attorney before filing). This includes IRAs, 401(k)s, 403(b)s, corporate pension plans, government pension plans, union pension plans.
Answered on Aug 20th, 2014 at 10:41 AM
Funds rolled over from a 401K to an IRA are exempt from judgment creditors, as long as the rollover is accomplished according to applicable regulations.
Answered on Aug 20th, 2014 at 10:41 AM
Yes, as long as you do not have a taxable distribution, you can roll it over into an IRA and exempt it in your bankruptcy.
Answered on Aug 20th, 2014 at 6:27 AM
An exemption exists for a certain amount of retirement funds. Do not roll into IRA.
Answered on Aug 20th, 2014 at 6:25 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Need the details and to see the judgment but generally it should be protectable. Need the details for a firm opinion.
Answered on Aug 20th, 2014 at 6:24 AM
2 Awards
Yes, an Ira is an exempt asset.
Answered on Aug 20th, 2014 at 6:19 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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It will remain exempt if placed in an IRA.
Answered on Aug 19th, 2014 at 7:21 PM