Tag Archives: RetirementAssets

For the vast majority of people, financial catastrophe can strike at any moment. Medical bills, divorce, taking care of loved ones, losing your job – these scenarios can be financially disastrous. It may be tempting to raid your IRA or 401k to pay off debts. This is an unnecessary and dangerous decision. You may be surprised to learn you can keep retirement plans in bankruptcy. Under the Employee Retirement Income Security Act (ERISA), 401(k)s and 403(b)s may not be included in your bankruptcy. In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act expanded bankruptcy protections to IRAs and other retirement plans. For traditional and Roth IRAs, funds up to $1,283,025 (as of 2016; this amount will change again in 2019) are protected by federal law during bankruptcy. Depending on the type of IRA plan you have, there might not be a limit. There are also state exemptions on retirement…
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