SIMPLE IRA Plans

Keoghs

Employee Stock Ownership Plans (ESOP)

Profit-Sharing Plans

On the other hand, traditional IRAs and Roth IRAs are not protected by ERISA. However, they are protected under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). As long as IRA funds are protected up to a specific limit adjusted for inflation every three years. These funds are not subject to bankruptcy. At the time of writing, the federal bankruptcy exemption for IRAs is $1,512,350.

Are Annuities Exempt in Bankruptcy? A Complex Question

The short answer? It depends.43:T67e,As Cara O’Neill, an attorney, notes on NOLO, several factors determine whether your annuity is protected from creditors. These include state and federal laws, the specific terms of your annuity, and the timing of its purchase.

1) Understanding State and Federal Exemptions

Annuity exemption laws vary widely from state to state. Depending on the state, some annuities are protected significantly, while others aren’t at all. In addition to exemptions allowed under federal bankruptcy law, certain types of annuities can also be exempted, particularly those that meet IRS requirements for qualified retirement accounts.

2) Key Factors Affecting Annuity Exemptions

Timing of purchase. There is a possibility that bankruptcy courts will examine annuities purchased shortly before bankruptcy.
Type of annuity. Different types of annuities, such as fixed, variable, and indexed, can affect their exemption status.
Funding source. Depending on the source of funds used to purchase the annuity, it

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