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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38910
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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ARE ANNUITIES THAT ARE PUT IN RETIREMENT FUNDS, THAT YOU MAY

Customer Question

ARE ANNUITIES THAT ARE PUT IN RETIREMENT FUNDS, THAT YOU MAY TAKE OUT WHEN YOU ARE 59 1/2 YEARS OF AGE EXEMPT WHEN CLAIMING BANKRUPTCY?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 8 years ago.

If the annuities are in an IRA, then it's exempt from bankruptcy seizure (Col. Revised Statutes 13-54-102(1)(s)).

 

But, once you take the money out, it's not exempt anymore, so you can't touch it until after you file for bankruptcy.

 

 

socrateaser and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
<p>I HAVEN'T READ THE ANSWER YET</p>
Expert:  socrateaser replied 8 years ago.

The answer was posted above in this thread. If you need clarification, feel free to ask.

Customer: replied 8 years ago.
WHAT IS THE DIFFERENCE BETWEEN ANNUITIES AND IRAS? AAM I ABLE TO PUT MONEY IN DIFFERENT ANNUNITIES AND/OR IRAS?
Customer: replied 8 years ago.
ARE ANNUITIES THE SAME AS IRAS? PLEASE EXCUSE MY IGNORANCE...BUT I NEED HELP IN WHERE TO PUT SOME MONEY. THANK YOU.
Customer: replied 8 years ago.
SEE ABOVE
Expert:  socrateaser replied 8 years ago.

An annuity is an insurance contract where the buyer pays money to the insurer in return for the insurer providing a future income payment.

 

An IRA is a tax-preferred governmentally approved arrangement whereby a person can save money for retirement without paying taxes until the money is withdrawn (or, in the case of a "Roth" IRA, grows tax-free after the initial contribution is deposited).

 

An annuity can be purchased inside of an IRA, or outside. If it's purchased inside, it's exempt from bankruptcy seizure. If it's purchased outside, then it's not exempt, generally.

 

You say that you're trying to "secure" some money that you received from a life insurance policy. You could contribute that money to an IRA so as to protect it, but there are limits to the amount that you contribute in any year. So, if you are contemplating bankruptcy, then there may not be enough time to protect all of the money, depending upon where you put it.

 

If you own your own home and have less than $125,000 in equity, then you could contribute up to the amount that would create that amount of equity, and that money would also be safe.

 

Or, you could move to Texas or Florida, and purchase a home, and whatever money you put into the home will be exempt from a bankruptcy action.

 

If you are really concerned, and it appears that you are, then you may want to consider getting a consultation with a local bankruptcy attorney. The initial consult is generally free, so you have nothing to lose.

 

 

Customer: replied 8 years ago.
tHANKS SO MUCH!
Expert:  socrateaser replied 8 years ago.
Your welcome and good luck.

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