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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2863
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Is it ok by bankruptcy courts to open a Roth IRA for myself

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Is it ok by bankruptcy courts to open a Roth IRA for myself and my wife prior to filing for bankruptcy? If so, would the two Roth IRAs be protected as an exemption? My wife and I pan to file for joint bankruptcy. Thanks.

Terry

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

If you open it up just prior to filing, in order to make a maximum contribution to protect an asset, then the bankruptcy trustee could avoid that as a preference. You would want to wait until after the case to do that to avoid that issue.

Terry L. :

If it was already open, and it was a normal contribution, say monthly, that has been going on for a year or more, then that wouldn't be an issue.

Terry L. :

You don't want to create red flags by making out of the normal payments or transactions right before filing.,

Terry L. :

Do it after the case, there would be no issues then.

Terry L. :

Let me know if you have any questions.

Terry L. :

Thanks

Terry L. :

Terry

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