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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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If I have a business with a self directed ROTH IRA and I get

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If I have a business with a self directed ROTH IRA and I get sued is the Roth excempt from the law suit?


Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on


IRA accounts are exempt from bankruptcy trustees,


The bankruptcy laws provide an exemption of up to $1,000,000 for your IRA’s, which protects them through the bankruptcy, even if it is a self directed IRA, the assets of the IRA would be protected.


almost all “retirement funds” are exempt assets in bankruptcy. This is very broad protection that applies to all types of plans including 401(k) plans and 403(b) plans. IRAs and Roth IRAs are regarded as retirement funds, but there is an exception to the exemption. They are only exempt in the maximum amount of $1,000,000.

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Customer: replied 3 years ago.

Are annutities and life insurance policies exempt from lawsuites and bankruptcy?

Annuity contract proceeds to $250 per month are protected, as well as the below.

11 U.S.C. § 522 - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).
11 U.S.C. § 522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,171,150.
2.10.180 - Judges.
6.15.020 - ERISA-qualified benefits, including IRAs and Keoghs.
41.24.240 - Volunteer firefighters.
41.26.053 - Law enforcement officials and firefighters.
41.28.200 - City employees.
41.32.052 - Teachers.
41.40.050 - Public employees and state employees.
43.43.310 - State patrol officers.
41.20.180 - Police officers.
Public Benefits
7.68.070 - Crime victims' compensation.
50.40.020 - Unemployment compensation.
51.32.040 - Industrial insurance (workers' compensation).
74.04.280 - General assistance.
74.08.210 - Old-age assistance.
74.13.070 - Child welfare.
Tools of Trade
6.15.010 - Tools and materials used in any trade up to $10,000; library, office furniture, equipment and supplies of a physician, surgeon, attorney, clergyman or other professional up to $10,000; farm trucks, tools, equipment, supplies, stock and seed of a farmer up to $10,000.

The following are exempt in Washington State.
Customer: replied 3 years ago.

So if I have a retirement annuinity that pays me when I'm 62.5 - and it pays 10 k a year - can that be subject to a law suit later? Or can the amount that I have in an annuity be claimed as an asset in a divorce or lawsuit before I am collecting it?

It would not be subject to a suit, as the debts would be discharged through your bankruptcy. The annuity can be claimed in a divorce or lawsuit, however that would be rare.

A divorce claim is more likely.
Customer: replied 3 years ago.

Where can I get language for a prenup?

You can go to the link above.
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