(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start': new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src= 'https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f); })(window,document,'script','dataLayer','GTM-NHW25TH'); window.dataLayer = window.dataLayer || []; function gtag(){dataLayer.push(arguments);} gtag('js', new Date()); gtag('config', 'G-BPZENKSMDF');

Archive | July, 2014

How to Avoid the Loss of Inherited 401k and IRA Funds to Creditors in Your Bankruptcy Case

You may be surprised to learn that Congress gave America a financial break in 2005. You can stash away up to about $1,245,375 in 401k/IRA accounts and still file for bankruptcy without losing any of the funds.

What can you do to protect your inheritance for someone who will be your benefactor in the future, or if you are thinking of your own estate plans and distributions, the 401k and IRA funds that you intend to gift to those who you wish to inherit your estate someday?

Limitations in Bankruptcy Cases on 401k and IRA Funds Received Thru Inheritance

There is an important limitation to this Congressional gift. Effective June 2014, any 401k or IRA funds that you receive by way of inheritance—as opposed to earning the funds yourself—are no longer exempt in a bankruptcy proceeding. In fact, a bankruptcy trustee can take inherited IRA/401k funds from you if you file for bankruptcy after the benefactor who left the funds to you dies.
Continue Reading →