I just retired and need to rollover my pension into a rollover IRA. My current objective is asset protection and exemption from BK 7.
I'm rolling over my pension into a rollover IRA. On the application, I indicated that "I will primarily use my IRA account to: Buy, hold, and occasionally trade stocks, mutual funds, ETFs or bonds"
Would my pension proceed that I rolled over into my IRA account be still protected if the contents of the account are stocks, mutual funds, cash or other instruments that are not usually exempt in Chapter 7 bankruptcy?
I'm hoping that this IRA account would be exempt in Chapter 7 BK or protected from judgement levy. What do I need to make sure that this account would accomplish my objectives?
As long as the investments are still held in the IRA rollover account, they should be protected in bankruptcy as well as from a judgment creditor. Speak to the manager of the institution for further information about how they act to protect their depositors. Hope this perspective helps!
Be sure you are dealing with a qualified IRA company. If so, such are exempt from the Chapter 7 trustee.
I agree with the attorneys that have answered already, As long as the retirement meets the definition under the Internal Revenue Service, it will be protected from the trustee. Of course you should discuss this with your attorney.