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Here is the Mississippi law on pensions and retirement plan exemptions:
IRAs and Keoghs, unlimited amount exempted , but must be deposited more than one year before filing bankruptcy [85-3-1(b)(iii)];
retirement benefits, unlimited amount if deposited more than one year before filing bankruptcy [85-3-1(b)(iii)];
private retirement benefits, unlimited amount if tax-deferred [71-1-43];
I was not able to find any MISS law that would speak to your specific issue without the use of a third party fee based service. Further, this is a difficult issue to address. However, it appears that the general law on this issue is that so long as you can trace the funds directly back to the retirement distribution and that such funds have not been commingled with non exempt funds or assets, the 401k exemption should still apply to the lump sum distribution.
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