50 State plus D.C. Creditor Exemption Statutes for IRAs ...

50StateplusD.C.CreditorExemptionStatutesforIRAs,NonERISA403(b)andRothVariants

Chartwillnote"no"iftherearesignificantlimitationsonprotection,suchasonlytoextent"reasonablynecessary"forsupport,oradollaramount. Chartwillnote"yes"despiteminorlimitations,suchastransfersw/in90daysofbankruptcy,nondeductibleIRA,child/alimony/fraudulenttransfer. Note:insomestates/circuits,SEP,SIMPLEor"deemed"IRAsmayreceivelesserornoprotectionduetoERISApreemption.

State Alabama

StateStatute Ala.Code?193B508

Alaska

AlaskaStat.?09.38.017

Arizona

Ariz.Rev.Stat.331126(B)

Arkansas California

Ark.CodeAnn.?1666220 Cal.Civ.Proc.Code?704.115,703.140

Colorado

Co.Rev.Stat.1354102(s)

Connecticut Delaware Wash.DC

Florida

Conn.Gen.Stat.?52321a 10Del.Code?4915 D.C.Code?15501(a)(9) Fla.Stat.Ann.?222.21

IsProtectionUnlimited?

Loopholes,ExceptionsorUniqueFeaturesinStatute

IRA RothIRA 403(b)

(e.g.areinheritedIRAsprotected,SEP/SIMPLEs?)

Yes

Yes

maybe Updatedin2012toincludeRothIRAs.Protects403(b)

annuities, but403(b)accounts? InReNavarreno

protectionforinheritedIRAs(spouseunclear)

Yes

Yes

Yes Doesnotapplytoamountscontributedwithin120daysof

bankruptcyfiling.Clearlyprotectsinheritedretirement

accounts.ProtectsintervivostransfersIRAs

Yes

Yes

Yes Doesnotapplytoamountscontributedwithin120days

beforebankruptcyfiling.Statuteclearlyprotectsinherited

IRAsaswell.Childsupportexceptionin(D)

Yes

Yes

Yes TraditionalIRA/403bcontributionsinexcessofdeductible

limits,nondeductibleIRAs,notprotected.

No

No

No Onlytotheextentnecessarytoprovideforthesupportof

debtor,spouseanddependents.InheritedIRAsnobetter,

seeInreGreenfield.InreTrawickandBerry

Yes

Yes probably Childsupport,feloniouskillingexceptions403bsnot

mentionedspecifically,butareprobablyprotected

Yes

Yes

Yes IncludeseducationESAs,MSAs.Exceptionsforcosts/debts

duecrimevictims,incarcerationcosts

Yes

Yes

Yes Includesadd'lprotectionfor60dayrollovers.Childsupport,

statetaxexception.

Yes

Yes

Yes Appliestoresidentsor thosewho"earnlivelihood"DC.

ExceptionsforD.C.taxes,nondeductiblecontribution

Yes

Yes

Yes Newstatutebroadlyincludesbeneficiaries,inheritedIRAs

(2)(c),substantiallycompliantplans.Fraudulenttransfers

maybeexceptedInreAsunmaa

Georgia

Ga.CodeAnn.?4413100(a)(2)and(2.1)

Yes*

No

Hawaii

HawaiiRev.Stat.?651124

Idaho Illinois

IdahoCode?11-604A,551101,11607 735I.L.C.S.5/121006

Indiana Iowa

Ind.CodeAnn.?55102(c)(6) IowaCode? 627.8(f)

Kansas

Kan.Stat.Ann.?602308(b)

No*

No*

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Kentucky Louisiana

KyRev.Stat.? 427.150(2) La.Rev.Stat.Ann.??20:33(1),13:3881(D)

Yes

Yes

Yes

Yes

Maine

Me.Rev.Stat.Ann.Tit.14,?4422(13)(E)

No

No

Maryland

Md.CodeAnn.Cts.&Jud.Proc.?11504(h)(1) Yes

Yes

No Georgia'sstatuteismorecomplicated.Statutedivides betweenrightstoperiodicpayments(limitedto"reasonably necessary")andinterestsincorpusnotyetdistributed(not limited).RothIRAnotmentionedinstatute,butprotectedif "necessary"byInreBramlette .InBankr,statestatute exemptsIRAInreMcFarland

No* Theexemptionmightbeunlimited,butdoesnotapplyto contributionsmadetoaplan,IRA/403(b)withinthethree yearsbeforethedateacivilactionisinitiatedagainstthe debtororfilingofbankrupcty.

Yes InheritedIRAsprotectedperInreMcClelland .Notracingof protectiononcefundsoutsideInreCarlson

Yes Evenplans"intendedingoodfaithtoqualify"protected. InheritedplansnotprotectedInreTaylor,Branitv.Branit, 2015ILApp(1st)141297(2015)

Yes UnclearifnondeductibleIRAsorbackdoorRothIRAs protected.InheritedIRAsunprotected:InreKlipsch

No Requiresresidency.UnclearifnondeductibleIRAsprotected, orcontributionsbyspouse.NonERISA403(b)notin(f),but maybeprotectedin(e).

Yes Mayappear toprotectinheritedretirementplans("shallbe exemptfromanyandallclaimsofcreditorsofthebeneficiary orparticipant"),butseeCommerceBankv.Bolander case holdingcontraryandrecentdecisionInreMosby ,532B.R. 167(2015).NotracingprotectiononceoutofIRA/planIn reCarbaugh

Yes Contributionswithin120daysoffilingbankruptcyexcepted, alimony/childsupport

Yes Contributionswithinoneyearofbankruptcyfiling, alimony/childsupport.InheritedIRAnotprotectedunderLA lawafterClark InreEverett ,520B.R.498(E.D.La.2014)

No $15,000oronlytotheextentreasonablynecessaryforthe supportofthedebtor/dependents

Yes ExceptionforstateDeptofHealthandMentalHygiene. UncertainprotectionfornondeductibleIRAs.60day rolloversprotectedwhileoutsideperInreGibson.

Massachusetts Mass.Gen.L.Ch.235?34A;236?28

Yes

Yes

Yes Exceptionsforspousal/childmaintenancesupport,crime

victims,additionalexceptionsforamountscontributedin

excessof7%ofincomewithin5yearsof

Michigan

MCLS?600.5451(1),?600.6023(1)(jk)

Minnesota Minn.Stat.Ann.?550.37(24) Mississippi Miss.CodeAnn.?8531(e)

bankruptcy/judgment.

Yes

Yes

No Exceptionsforcontributionwithin120daysoffilingfor

bankruptcy.StrangelyprotectsERISA403(b)s,whichdoesnot

needstateprotection,butomitsnonERISA403(b)swhichdo.

NondeductibleIRAsnotprotected.SEPIRAsunprotected

Lampkinsv.Golden.

No

No

No Protectionlimitedto$69,000(adjustsforinflation),or

amounts"reasonablynecessary"forsupportof

debtor/spouse/dependents.

Yes

No*

Yes StatutereferencesIRC408(orcorresondingprovisionsof

successorlaw),unclearwhether408ARothqualifies

Missouri

Mo.Ann.Stat.?513.430.1(10)(ef)

Yes

Yes

Yes Exceptionsforfraudulentconveyance.Veryclearprotection

forinheritedaccounts

Montana

Mont.CodeAnn.??2513608(1)(e),312106 Yes

Yes

No Exceptionsforspousalmaintenance/childsupport.Non

deductiblecontributionstotraditionalIRAsmaynotbe

protected.InheritedIRAsclearlynotprotectedperMontana

SupCtdecisionInreGolz ,2015MT318.

Nebraska

Neb.Rev.Stat.?251563.01

Nevada

Nev.Rev.Stat.?21.090(r)

NewHampshire N.H.CodeAnn.?511:2,XIX

NewJersey N.J.Stat.Ann.?25:21(b)

NewMexico N.M.Stat.Ann.??42101,42102

No

No

No Mustbereasonablynecessaryforsupportof

debtor/dependents

No

No

No Theexemptionislimitedto$500,000forRothortraditional

IRAs,butnonERISA403bsmaynotgetthat.

Yes

Yes

Yes 403bannuitiesmentioned,butnot403baccounts,though

statuteisverybroadlyworded.ExceptionsforPre1999

debts,fraudulenttransfers

Yes

Yes

Yes Exceptionfortortiouskilling,child/spousalsupport,

fraudulenttransfers.ExclusiongrantedInreYuhas.

InheritedIRAprotectedInreAndelino

Yes

Yes

Yes Firststatuteformarried,headofhousehold.Secondfor

single.Caselawexceptionforfraudulenttransfers.

NewYork

N.Y.CLSCPLR?5205(c)

Yes

Yes

Yes Exceptionsforcontributionswithin90days,fraudulent

conveyance,nonERISA403bsnotmentionedspecificallybut

probablyprotected.

NorthCarolina N.C.Gen.Stat.?1C1601(a)(9)

Yes

Yes

Yes Anyindividualretirementplan"treatedinthesamemanner" asIRA,so403b,457shouldbeprotected.Inherited accountshaveclearprotectionaswell.

NorthDakota N.D.Cent.Code?282203.1(3)

Ohio

OhioRev.CodeAnn.?2329.66(A)(10)(c)

Oklahoma Oregon

31Okl.St.?1(A)(20) Or.Rev.Stat.?18.358

Pennsylvania 42Pa.C.S.??8124(b)(1)(vii),(viii),(ix)

RhodeIsland R.I.Gen.Laws?9264(11),(12) SouthCarolina S.C.CodeAnn.?154130(13)

SouthDakota S.D.LawsAnn.434516and434517

Tennessee Tenn.CodeAnn.?262105

Texas

Tex.Prop.Code?42.0021

No

No

No Mustberesident.OneYear"curingperiod",mustbetax

qualifiedaccounts,includingRoth,traditionalIRAand403b.

Limitedto$100,000peraccountupto$200,000,ormoreif

"reasonablynecessary"forsupportofdebtor/dependents

Yes

Yes

No SEPIRAsmaybedeniedprotectionbycaselawexception,

nonERISA403bslimitedto"reasonablynecessary",

InheritedIRAsclearlyprotected,alongwiththosedisqualified

through"goodfaitherror",butnotinherited403(b)s.

Alimony/childsupportexceptionsapplybutare,strangely,

inapplicabletoinheritedIRA.NondeductibleIRAprotection

unclear.

Yes

Yes

Yes Exceptionsforfraudulenttransfers.InheritedIRAsnot

protectedInreSims .

Yes

Yes

Yes Protectionspecificallyincludesspouseasbeneficiary.

Exceptionsforfraudulenttransfer,excesscontributionsover

IRSpermittedlimits,child/alimony

Yes

Yes

Yes Protected,butoneyear"curingperiod"forcontributions

within1year(notincludingrollovers)anddebtor

contributionsinexcessof$15,000inaoneyearperiod.

Fraudulenttransferexception

Yes

Yes

No Spousal/childsupportexceptions,ERISAaccountsprotection

butunclearwhethernonERISA403b

Yes

Yes

No Requiresdomicile.NonERISA403bsnotmentioned,but

probablylimitedtoamounts"reasonablynecessary".2012

amendmentincreasedIRAprotection,presumablyincluding

inheritedIRAs:"Theexemption...shallbeavailablewhether

suchindividualhasaninterestintheretirementplanasa

participant,beneficiary,...orotherwise."Clearenough?

No

No

No Exemptsbroadcategoryof"retirementbenefits",including

Roth,IRAsand403bs,butonlyupto$1,000,000,withcourt

discretiontolimitper434518.State/localtaxexception

Yes

Yes

Yes Interestingprohibitionagainstcreditorsubpeonaing

documentsrelatedtoplan.Mustbetaxqualified,no

residencyrequired.Stateisexceptioncreditor.

Yes

Yes

Yes SpecificallyincludesinheritedIRAsaswell,andevenhas

specificprotectionfor60daysfor60dayrollovers.

Utah

UtahCodeAnn.?78B5505,508

Vermont

12Vt.Stat.Ann.?2740(16)

Virginia

Va.CodeAnn.?3434(B)

Washington Wash.Rev.Code?6.15.020 WestVirginia W.V.CodeAnn.3881,38104(inbankr)

Wisconsin Wisc.Stat.Ann.?815.18(3)(j)

Wyoming

Wyo.Stat.Ann.?120110

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes* Probably

Yes

Yes

Yes OneYear"curing"denyingprotectionforcontributionswithin oneyear.Exceptionsforspouse/childsupport,state/local taxes,employeeascreditorfor1mo.wages

Yes Oneyear"curing"requiredforprotectionofcontributions withinoneyearoffilingbankruptcy.Protectionunclearat bestfornondeductibleIRAs.

Yes AppearstoprotectinheritedIRA/403bs,butconfusingly, protectionistothe"extentpermittedunderfederal bankruptcylaw",whichbegsquestionwhatthatisafterClark v.Rameker .Doesthisalsolimitcontributorynonrollover IRAsto$1,245,475limit?

Yes OnlyforWashington"citizens".Protectionextendedto tracingevenafterassetsdistributedoutsideIRA/planper recentlegislationoverrulingAnthis case.

No IRAs,includingSEPIRAs,exempttoextentnoexcess contributionsmade.Requiresresidency,taxqualified.403bs protectedtoextent"reasonablynecessary".

Yes AllIRAs/403bsprotected,butmustbe"providingbenefitsby reasonofage,illness,disability,deathorlengthofservice", doRothIRA/403bqualify?Also"ownerdominatedplan" exception(SEP/SIMPLE?).InheritedIRAnotprotected:Inre Clark,InreKirchen

Yes Mustbetaxqualified,onlyprotectedtotheextent contributionsmade"whilesolvent".

?20122015EdwinP.MorrowIII,constructivecriticismorupdatesappreciated:edwin_p_morrow@oredwin.morrow3@

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download