Please define "Interest in Retirement Accounts" in regards to insolvency due to Cancellation of Debt

I need clarification on an Insolvency Worksheet. Interest in retirement accounts? I have 40K total in State Teachers Retirement , it earned 5% in 2012, the year I received the 1099c. I've seen conflicting answers on these sites and my CPA is not even sure. Bottom line..is my asset 40K or 2K? Thanks in advance

Dallas, TX -

Attorney Answers (1)

Paula Brown Sinclair

Paula Brown Sinclair

Bankruptcy Attorney - Twin Falls, ID
Answered

Why this question would buffalo a CPA is certainly a mystery. On the basis of your statements, if the retirement account is all yours, your interest is the value of the asset, $40K. $2K is the annual income.

This answer is offered as a public service for general information only and may not be relied upon as legal advice.
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