Gold Silver IRA protection from Bankruptcy, Lawsuits, Creditors

Did you know that all 50 states have either a full or partial exemption from potential creditors abilities to access an individual’s IRA assets and holdings?

Even Roth IRAs are fully or partially exempt in 90% of the states in the union (see below).

Like us, if you live and do business in the USA you are also operating in a highly litigious society. It is important to protect what you have earned in case something unfortunate were to happen to you or your livelihood as a result of any unforeseen turns of events.

Common lawsuits involving breaches of contract, medical malpractice, personal injury, disgruntled employees, etc. are a high threat to estates and various professions livelihoods.


Gold & Silver IRAs are Highly Protected by Law

Business owners, doctors, dentists, CPAs, lawyers, and other professionals often use Individual Retirement Accounts (IRAs) as ways to invest and save for the long term. The intention often for IRAs is to possibly use the power of compounding gains in wealth expansion with potential special tax exemptions to help increase their retirement fund size post career lifetimes and living standards.

Practicing business professionals own physical Silver and Gold IRAs to help diversify their investment portfolios against standard financial threats (e.g. currency debasements, financial crisis, inflation, bank failures, etc.). These same professionals also own IRAs to help defend their wealth against would be creditors or potential lawsuits which often happen in our increasingly lawsuit-prone society.

What is an IRA?

Individual Retirement Accounts, or IRAs, are a type of retirement savings and investment account that comes with tax benefits to help you save for after your working life. The specific IRA tax benefit will depend on the type of IRAs you have: Roth IRA, Traditional IRA, or Nondeductible IRA.

IRA Protection in Bankruptcy vs Creditors

Another potential benefit of having an IRA is creditor protection in the event of a bankruptcy.

The following is a list of IRA creditor exempt states and applicable statutes according to  “Protection From Creditors for Retirement Plan Assets,” which was published in the January 2014 issue of The Tax Adviser.

For any further updated information, consult your tax professional(s) as we are not tax professionals.



State

State Statute

IRA Exempt?

ROTH IRA Exempt?

Special Statutory Provisions

Gold Silver Bullion IRA Depository

Alabama

Ala. Code §19-3B-508

YES

YES

--

NO

Alaska

Alaska Stat. §09.38.017

YES

YES

The exemption does not apply to amounts contributed within 120 days before the debtor files for bankruptcy.

NO

Arizona

Ariz. Rev. Stat. §33-1126(B)

YES

YES

The exemption does not apply to a claim by an alternate payee under a qualified domestic relations order (QDRO). The interest of an alternate payee is exempt from claims by creditors of the alternate payee. The exemption does not apply to amounts contributed within 120 days before a debtor files for bankruptcy.

NO

Arkansas

Ark. Code §16-66-220

YES

YES

A bankruptcy court held that the creditor exemption for IRAs violates the Arkansas Constitution—at least with respect to contract claims.

NO

California

Cal. Code of Civ. Proc. §704.115

Partly

NO

IRAs are exempt only to the extent necessary to provide for the support of the judgment debtor when the judgment debtor retires and for the support of the spouse and dependents of the judgment debtor, taking into account all resources that are likely to be available for the support of the judgment debtor when the judgment debtor retires.

YES

Colorado

Colo. Rev. Stat. §13-54-102

YES

YES

Any retirement benefit or payment is subject to attachment or levy in satisfaction of a judgment taken for arrears in child support; any pension or retirement benefit is also subject to attachment or levy in satisfaction of a judgment awarded for a felonious killing.

NO

Connecticut

Conn. Gen. Stat. §52-321a

YES

YES

--

NO

Delaware

Del. Code Ann. tit. 10, §4915

YES

YES

An IRA is not exempt from a claim made pursuant to Title 13 of the Delaware Code, the title that pertains to domestic relations orders.

YES

Florida

Fla. Stat. §222.21

YES

YES

An IRA is not exempt from a claim of an alternate payee under a QDRO or claims of a surviving spouse pursuant to an order determining the amount of elective share and contribution. Florida provide.

YES

Georgia

Ga. Code §44-13-100

YES

NO

Distributions from IRAs are exempt only to the extent necessary for the support of the debtor and any dependent.

NO




State

State Statute

IRA Exempt?

ROTH IRA Exempt?

Special Statutory Provisions

Gold Silver Bullion IRA Depository 

Hawaii

Haw. Rev. Stat. §651-124

YES

YES

The exemption does not apply to contributions made to a plan or arrangement within three years before the date of a bankruptcy or a civil action is initiated against the debtor.

NO

Idaho

Idaho Code §55-1011

YES

YES

The exemption applies only for claims of judgment creditors of the beneficiary or participant arising out of a negligent or otherwise wrongful act or omission of the beneficiary or participant resulting in money damages to the judgment creditor.

YES

Illinois

735 Ill. Comp. Stat. 5/12-1006

YES

YES

--

NO

Indiana

Ind. Code §34-55-10-2(6)

YES

YES

--

NO

Iowa

Iowa Code §627.6(8)

YES

YES

--

NO

Kansas

Kan. Stat. §60-2308

YES

YES

--

NO

Kentucky*

Ky. Rev. Stat. §427.150(2)(f)

YES

YES

The exemption does not apply to any amounts contributed to an IRA if the contribution occurred within 120 days before the debtor filed for bankruptcy. The exemption also does not apply to the right or interest of a person in an IRA to the extent that right or interest is subject to a court order for payment of maintenance or child support.

NO

Louisiana

La. Rev. Stat. §§20-33(1) and 13-3881(D)

YES

YES

No contribution to an IRA is exempt if made less than one calendar year from the date of filing bankruptcy, whether voluntary or involuntary, or the date writs of seizure are filed against the account. The exemption also does not apply to liabilities for alimony and child support.

NO

Maine

Me. Rev. Stat. tit. 14, §4422(13)(F)

Partly

NO

IRAs are exempt only to the sum of $15,000 or to the extent reasonably necessary for the support of the debtor and any dependent.

NO

Maryland

Md. Code Cts. & Jud. Proc. §11-504(h)

YES

YES

IRAs are exempt from any and all claims of creditors of the beneficiary or participant other than claims by the Department of Health and Mental Hygiene.

NO



State

State Statute

IRA Exempt?

ROTH IRA Exempt?

Special Statutory Provisions

Gold Silver Bullion IRA Depository

Massachusetts

Mass. Gen. Laws ch. 235, §34A

YES

YES

The exemption does not apply to a court order concerning divorce, separate maintenance or child support, or a court order requiring an individual convicted of a crime to satisfy a monetary penalty or to make restitution, or sums deposited in a plan in excess of 7% of the total income of the individual within five years of the individual’s declaration of bankruptcy or entry of judgment.

NO

Michigan*

Mich. Comp. Laws §600.6023(j)

YES

YES

The exemption does not apply to amounts contributed to an IRA or individual retirement annuity if the contribution occurs within 120 days before the debtor files for bankruptcy. The exemption also does not apply to an order of the domestic relations court or nondeductible contributions to an IRA.

NO

Minnesota

Minn. Stat. §550.37(24)

YES

YES

Exempt to a present value of $69,000 and additional amounts reasonably necessary to support the debtor, spouse, or dependents.

NO

Mississippi

Miss. Code §85-3-1

YES

NO

--

NO

Missouri

Mo. Rev. Stat. §513.430.1

YES

YES

If proceedings under Title 11 of the U.S. Code are commenced by or against the debtor, no amount of funds shall be exempt in such proceedings under any plan or trust that is fraudulent as defined in Section 428.024 of the Missouri Revised Statutes, and for the period such person participated within three years prior to the commencement of such proceedings.

NO

Montana

Mont. Code §31-2-106(3)

YES

NO

The exemption excludes that portion of contributions made by the individual within one year before the filing of the petition of bankruptcy that exceeds 15% of the gross income of the individual for that one-year period.

NO

Nebraska

Neb. Rev. Stat. §25-1563.01

PARTLY

NO

The debtor’s right to receive IRAs and Roth IRAs is exempt to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.

NO

Nevada

Nev. Rev. Stat. §21.090(1)(r)

YES

YES

The exemption is limited to $500,000 in present value held in an IRA that conforms with Sec. 408 or 408A

YES

New Hampshire

N.H. Rev. Stat. 52 §511:2

YES

YES

Exemption applies only to extensions of credit and debts arising after Jan. 1, 1999.

NO

New Jersey

N.J. Stat. 25:2-1(b)

YES

YES

--

NO



State

State Statute

IRA Exempt?

ROTH IRA Exempt?

Special Statutory Provisions

Gold Silver Bullion IRA Depository 

New Mexico

N.M. Stat. §§42-10-1, -2

YES

YES

A retirement fund of a person supporting himself/herself or another person is exempt from receivers or trustees in bankruptcy or other insolvency proceedings, fines, attachment, execution, or foreclosure by a judgment creditor.

NO

New York

N.Y. C.P.L.R. 5205(c)

YES

YES

Additions to IRAs are not exempt from judgments if contributions were made after a date that is 90 days before the interposition of the claim on which the judgment was entered.

YES

North Carolina

N.C. Gen. Stat. §1C-1601(a)(9)

YES

YES

Specific exemption for inherited IRAs.

NO

North Dakota

a N.D. Cent. Code §28-22-03.1(7)

YES

YES

The account must have been in effect for a period of at least one year. Each individual account is exempt to a limit of up to $100,000 per account, with an aggregate limitation of $200,000 for all accounts. The dollar limit does not apply to the extent the debtor can prove the property is reasonably necessary for the support of the debtor, spouse, or dependents.

NO

Ohio*

Ohio Rev. Code §2329.66(A)(10)

YES

YES

SEPs and SIMPLE IRAs are not exempt. Specific exemption for inherited IRAs.

NO

Oklahoma

Okla. Stat. tit. 31, §1(A)(20)

YES

YES

--

NO

Oregon

Or. Rev. Stat. §18.358

YES

YES

--

NO

Pennsylvania

42 Pa. Cons. Stat. §8124(b)(1)(ix)

YES

YES

The exemption does not apply to amounts contributed to the retirement fund in excess of $15,000 or within one year before the debtor filed for bankruptcy.

NO

Rhode Island

R.I. Gen. Laws §9-26-4(11)

YES

YES

The exemption does not apply to a court order pursuant to a judgment of divorce or separate maintenance, or a court order concerning child support.

NO

South Carolina

S.C. Code §15-41-30

YES

YES

Specific exemption for inherited IRAs.

NO




State

State Statute IRA Exempt? ROTH IRA Exempt? Special Statutory Provisions Gold Silver Bullion IRA Depository

South Dakota

S.D. Codified Laws 43-45-16; 43-45-17

  YES

  YES

Exempts “certain retirement benefits” up to $1 million. Cites Sec. 401(a)(13). Subject to the right of the state of South Dakota and its political subdivisions to collect any amount owed to them.

           NO

Tennessee*

Tenn. Code §26-2-105

  YES

  YES

Not exempt from QDROs.

           NO

Texas

Tex. Prop. Code §42.0021

  YES

  YES

Specific exemption for inherited IRAs.

           NO

Utah

Utah Code §78-23-5(1)(a)(xiv)

  YES

  YES

The exemption does not apply to amounts contributed or benefits accrued by or on behalf of a debtor within one year before the debtor files for bankruptcy

          YES

Vermont

Vt. Stat. tit. 12, §2740(16)

  YES

  YES

Nondeductible traditional IRA contributions plus earnings are not exempt

           NO

Virginia

Va. Code §34-34

  YES

  YES

Exempt from creditor process to the same extent permitted under federal bankruptcy law. An IRA is not exempt from a claim of child or spousal support obligations.

           NO

Washington

Wash. Rev. Code §6.15.020

  YES

  YES

                                                  --

           NO

West Virginia

W.Va. Code §38-10-4

  YES

  NO

                                                  --           

           NO

Wisconsin

Wis. Stat. §815.18(3)(j)

  YES

  YES

The exemption does not apply to a court order concerning child support, family support, or maintenance, or any judgments of annulment, divorce, or legal separation.

           NO

Wyoming

Wyo. Stat. §1-20-110

Partly

Partly

Exempt to the extent payments are made to the fund while solvent

NO

* Kentucky, Michigan, Ohio, and Tennessee: The Sixth Circuit ruled in Lampkins v. Golden, 28 Fed. Appx. 409 (6th Cir. 2002), that a Michigan statute exempting SEPs and IRAs from creditor claims was preempted by ERISA. The decision appears, however, to be limited to SEPs and SIMPLE IRAs.

The following illustration covers the states where you can possibly have your Gold IRA or Silver IRA stored.
With SD Bullion, there are also two international and offshore IRA storage options for investors to choose from.  

Silver IRA Gold IRA Depository Options IRA protection from Bankruptcy, Lawsuits, Creditors SD Bullion SDBullion.com
If you would like to learn more about Gold IRA and Silver IRA and possibly setup your own physical bullionn IRA depository account holding, click here for more information.  

Share: