What Retirement Funds are Protected from Bankruptcy?
Retirement is a time when we hope to be able to relax and use our well-earned savings to our fullest enjoyment. But if you’ve suddenly run into financial troubles and are having a hard time making ends meet, you might be worried about the security of your retirement accounts should you decide to file for bankruptcy. However, as opposed to most general assets, certain retirement funds are protected even during bankruptcy.
Protected Retirement Funds
Your retirement fund might not be used to pay off creditors even if you file for bankruptcy, as some retirement funds are exempt from bankruptcy. For example, the retirement funds are exempt property:
- Government retirement plans
- Roth IRAs and IRAs up to a certain amount
- ERISA-covered retirement plans
- Tax-deferred annuity plans
- Keogh plans
These retirement plans are often protected from bankruptcy, so even if you find yourself in financial difficulty and have to file for bankruptcy, you can rest assured that these funds will likely not be touched. However, you should discuss your exact case with a lawyer to determine how to best protect your retirement savings prior to filing for bankruptcy.
You’ve worked hard for your money and your retirement fund should reflect that. But if you’ve fallen on difficult times and are thinking about filing for bankruptcy, the experienced attorneys of the Bradford Law Offices, PLLC, are here to help. Contact our local offices today by calling us at (919) 758-8879 to discuss your questions regarding your retirement funds and bankruptcy options.