Salt Lake City Bankruptcy Attorneys

Limits to Retirement Exemptions

With an unprecedented percentage of Americans nearing retirement, it is all the more important for a bankruptcy attorney or CPA (Certified Public Accountant) to understand specific exemptions that are allowable for 401(k) and other retirement plans under federal bankruptcy law. In fact, it is estimated that there is currently approximately $12 trillion that the public has invested in various types of retirement funds. These retirement accounts need all the protection they can get during bankruptcy proceedings. While federal law allows for retirement exemptions, there are limits and these should be fully understood.

A Salt Lake City bankruptcy lawyer at the Stone Law Firm can meet with you about how bankruptcy may affect your retirement plan. We represent clients throughout all of Salt Lake City, Provo and Ogden and offer a free initial consultation to help you get started.

What are the Limits to Retirement Exemptions in Utah Bankruptcy Cases?

There are limits to the amount of money that may be exempt from bankruptcy proceedings. This applies to retirement accounts and plans as well. At the time of this writing, federal bankruptcy law allows for a retirement exemption of IRA assets of up to $1 million. Additionally, a person filing for bankruptcy can roll assets from a qualified employer retirement plan into an IRA with full protection of the rollover amount in bankruptcy. This is true regardless of the state in which the filer resides. If you have a pension plan, 401(k) or 401(a) plan, the full amount will be exempt under federal law, even if it exceeds $1 million.

If you would like to find out more about how your retirement plan may be affected by bankruptcy, feel free to contact our firm to discuss your particular matter with an experienced bankruptcy lawyer. With our experience and knowledge of these matters, we can accurately evaluate your situation and determine whether you may qualify for retirement exemption, and if all of your retirement funds will be protected.

Contact a Salt Lake City bankruptcy attorney at the Stone Law Firm today to discuss retirement exemptions and bankruptcy.