| 50 State plus D.C. Creditor Exemption Statutes for IRAs,
Non-ERISA 403(b) and Roth Variants |
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| Chart will note "no" if there are significant
limitations on protection, such as only to extent "reasonably
necessary" for support, or a dollar amount. |
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| Chart will note "yes" despite minor limitations, such
as bankruptcy filing within 90-120 days, nondeductible IRA,
child/alimony/fraudulent transfer. |
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Is Protection
Unlimited? |
Loopholes, Exceptions or Unique Features in Statute |
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| State |
State Statute |
IRA |
Roth IRA |
403(b) |
(e.g. are inherited IRAs protected, SEP/SIMPLEs?) |
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| Alabama |
Ala. Code §19-3B-508 |
Yes |
Yes |
maybe |
Updated in 2012 to include
Roth IRAs. Protects 403(b) annuities, but 403(b) accounts? In Re Navarre - no protection for inherited IRAs (spouse unclear) |
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| Alaska |
Alaska Stat. §09.38.017 |
Yes |
Yes |
Yes |
Does not apply to amounts
contributed within 120 days of bankruptcy filing. Clearly protects inherited retirement
accounts. Protects intervivos
transfers IRAs |
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| Arizona |
Ariz. Rev. Stat. 33-1126(B) |
Yes |
Yes |
Yes |
Does not apply to
amounts contributed within 120 days
before bankruptcy filing. Statute
clearly protects inherited IRAs as well.
Child support exception in (D) |
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| Arkansas |
Ark. Code Ann. §16-66-220 |
Yes |
Yes |
Yes |
Traditional IRA/403b
contributions in excess of deductible limits, nondeductible IRAs, not protected. |
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| California |
Cal.
Civ. Proc. Code § 704.115, 703.140 |
No |
No |
No |
Only to the extent
necessary to provide for the support of debtor, spouse and dependents. Inherited IRAs no better, see In re Greenfield. In re Trawick and Berry |
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| Colorado |
Co. Rev. Stat. 13-54-102(s) |
Yes |
Yes |
probably |
Child support, felonious
killing exceptions - 403bs not
mentioned specifically, but are probably protected |
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| Connecticut |
Conn. Gen. Stat. §52-321a |
Yes |
Yes |
Yes |
Includes education ESAs,
MSAs. Exceptions for costs/debts due crime victims, incarceration costs |
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| Delaware |
10 Del. Code §4915 |
Yes |
Yes |
Yes |
Includes add'l protection
for 60 day rollovers. Child support,
state tax exception. |
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| Wash. DC |
D.C. Code § 15-501(a)(9) |
Yes |
Yes |
Yes |
Applies to residents or those who "earn
livelihood" DC. Exceptions for
D.C. taxes, nondeductible contribution |
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| Florida |
Fla.
Stat. Ann. §222.21 |
Yes |
Yes |
Yes |
New statute broadly
includes beneficiaries, inherited IRAs (2)(c), substantially compliant
plans. Fraudulent transfers may be
excepted - In re Asunmaa |
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| Georgia |
Ga.
Code Ann. § 44-13-100(a)(2) and (2.1) |
Yes* |
No |
No |
Georgia's statute is more
complicated. Statute divides between
rights to periodic payments (limited to "reasonably necessary") and
interests in corpus not yet distributed (not limited). Roth IRA not mentioned in statute, but
protected if "necessary" by In re
Bramlette.
In Bankr, state statute exempts IRA - In
re McFarland |
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| Hawaii |
Hawaii
Rev. Stat. § 651-124 |
No* |
No* |
No* |
The exemption might be
unlimited, but does not apply to contributions made to a plan, IRA/403(b)
within the three years before the date a civil action is initiated against
the debtor or filing of bankrupcty. |
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| Idaho |
Idaho Code §11-604A, 55-1101, 11-607 |
Yes |
Yes |
Yes |
Inherited
IRAs protected per In re McClelland. No tracing of protection once funds outside
- In re Carlson |
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| Illinois |
735 I.L.C.S.
5/12-1006 |
Yes |
Yes |
Yes |
Even plans "intended
in good faith to qualify" protected.
Inherited plans not protected - In re Taylor |
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| Indiana |
Ind. Code
Ann. § 55-10-2(c)(6) |
Yes |
Yes |
Yes |
Unclear if nondeductible
IRAs or back-door Roth IRAs protected. Inherited IRAs unprotected: In re Klipsch |
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| Iowa |
Iowa Code § 627.8(f) |
Yes |
Yes |
No |
Requires residency. Unclear if nondeductible IRAs protected, or
contributions by spouse. Non-ERISA
403(b) not in (f), but may be protected in (e). |
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| Kansas |
Kan.
Stat. Ann. § 60-2308(b) |
Yes |
Yes |
Yes |
May appear to protect
inherited retirement plans ("shall be exempt from any and all claims of
creditors of the beneficiary or participant"), but see Commerce Bank v. Bolander
case holding contrary. No tracing
protection once out of IRA/plan - In re
Carbaugh |
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| Kentucky |
Ky Rev. Stat. § 427.150(2) |
Yes |
Yes |
Yes |
Contributions within 120
days of filing bankruptcy excepted, alimony/child support |
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| Louisiana |
La.
Rev. Stat. Ann. §§ 20:33(1), 13:3881(D) |
Yes |
Yes |
Yes |
Contributions within one
year of bankruptcy filing, alimony/child support |
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| Maine |
Me.
Rev. Stat. Ann. Tit. 14, § 4422(13)(E) |
No |
No |
No |
$15,000 or only to the
extent reasonably necessary for the support of the debtor/dependents |
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| Maryland |
Md. Code
Ann. Cts. & Jud. Proc. § 11-504(h)(1) |
Yes |
Yes |
Yes |
Exception for state Dept of
Health and Mental Hygiene. Uncertain
protection for nondeductible IRAs.
60-day rollovers protected while outside per
In re Gibson. |
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| Massachusetts |
Mass.
Gen. L. Ch. 235 § 34A; 236 § 28 |
Yes |
Yes |
Yes |
Exceptions for
spousal/child maintenance support, crime victims, additional exceptions for
amounts contributed in excess of 7% of income within 5 years of
bankruptcy/judgment. |
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| Michigan |
MCLS
§ 600.5451(1), § 600.6023(1)(j-k) |
Yes |
Yes |
No |
Exceptions for contribution
within 120 days of filing for bankruptcy. Strangely protects ERISA 403(b)s,
which does not need state protection, but omits non-ERISA 403(b)s which
do. Nondeductible IRAs not protected. |
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| Minnesota |
Minn.
Stat. Ann. § 550.37(24) |
No |
No |
No |
Protection limited to $69,000 (adjusts for
inflation), or amounts "reasonably necessary" for support of
debtor/spouse/dependents. |
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| Mississippi |
Miss. Code Ann. §85-3-1(e) |
Yes |
No* |
Yes |
Statute references IRC 408
(or corresonding provisions of successor law), unclear whether 408A Roth
qualifies |
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| Missouri |
Mo. Ann. Stat.
§ 513.430.1(10)(f) |
Yes |
Yes |
Yes |
Exceptions for fraudulent
conveyance. Very clear protection for inherited accounts |
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| Montana |
Mont. Code Ann.
§§ 25-13-608(1)(e), 31-2-106 |
Yes |
Yes |
No |
Exceptions for spousal
maintenance/child support.
Non-deductible contributions to traditional IRAs may not be protected. |
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| Nebraska |
Neb.
Rev. Stat. § 25-1563.01 |
No |
No |
No |
Must be reasonably
necessary for support of debtor/dependents |
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| Nevada |
Nev.
Rev. Stat. § 21.090(r) |
No |
No |
No |
The exemption is limited to
$500,000 for Roth or traditional IRAs, but non-ERISA 403bs may not get that. |
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| New Hampshire |
N.H.
Code Ann. § 511:2, XIX |
Yes |
Yes |
Yes |
403b annuities mentioned,
but not 403b accounts, though statute is very broadly worded. Exceptions for Pre-1999 debts, fraudulent
transfers |
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| New Jersey |
N.J. Stat. Ann. §
25:2-1(b) |
Yes |
Yes |
Yes |
Exception for tortious
killing, child/spousal support, fraudulent transfers. Exclusion granted - In re Yuhas |
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| New Mexico |
N.M. Stat. Ann. §§ 42-10-1, 42-10-2 |
Yes |
Yes |
Yes |
First statute for married,
head of household. Second for
single. Case law exception for
fraudulent transfers. |
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| New York |
N.Y. CLS CPLR § 5205(c) |
Yes |
Yes |
Yes |
Exceptions for
contributions within 90 days, fraudulent conveyance, non-ERISA 403bs not
mentioned specifically but probably protected. |
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| North Carolina |
N.C. Gen. Stat. § 1C-1601(a)(9) |
Yes |
Yes |
Yes |
Any individual retirement
plan "treated in the same manner" as IRA, so 403b, 457 should be
protected. Inherited accounts have clear protection as well. |
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| North Dakota |
N.D.
Cent. Code § 28-22-03.1(3) |
No |
No |
No |
Must be resident. One Year "curing period", must be
tax qualified accounts, including Roth, traditional IRA and 403b. Limited to
$100,000 per account up to $200,000, or more if "reasonably necessary"
for support of debtor/dependents |
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| Ohio |
Ohio Rev.
Code Ann. § 2329.66(A)(10)(c) |
Yes |
Yes |
No |
SEP IRAs have case law
exceptions, non-ERISA 403bs limited to "reasonably necessary", Inherited IRAs clearly protected, along
with those disqualified through "good faith error", but not
inherited 403(b)s. Alimony/child
support exceptions apply but are, strangely, inapplicable to inherited
IRA. Nondeductible IRA protection
unclear. |
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| Oklahoma |
31 Okl. St. § 1(A)(20) |
Yes |
Yes |
Yes |
Exceptions for fraudulent
transfers. Inherited IRAs not
protected - In re Sims. |
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| Oregon |
Or. Rev. Stat. §18.358 |
Yes |
Yes |
Yes |
Exceptions for fraudulent
transfer, excess contributions over IRS permitted limits, child/alimony |
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| Pennsylvania |
42
Pa. C.S. §§ 8124(b)(1)(vii), (viii), (ix) |
Yes |
Yes |
Yes |
Protected, but one year
"curing period" for contributions within 1 year (not including
rollovers) and debtor contributions in excess of $15,000 in a one-year
period. Fraudulent transfer exception |
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| Rhode Island |
R.I.
Gen. Laws § 9-26-4(11), (12) |
Yes |
Yes |
No |
Spousal/child support
exceptions, ERISA accounts protection but unclear whether non-ERISA 403b |
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| South Carolina |
S.C. Code Ann. § 15-41-30(13) |
Yes |
Yes |
No |
Requires domicile. Non-ERISA 403bs not mentioned, but probably
limited to amounts "reasonably necessary". 2012 amendment increased IRA protection,
presumably including inherited IRAs: "The exemption ... shall be available whether such
individual has an interest in the retirement plan as a participant,
beneficiary,...or otherwise." |
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| South Dakota |
S.D. Laws Ann. 43-45-16 and 43-45-17 |
No |
No |
No |
Exempts broad category of
“retirement benefits”, including Roth, IRAs and 403bs, but only up to $1,000,000, with court discretion to limit per 43-45-18.
State/local tax exception |
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| Tennessee |
Tenn. Code Ann. § 26-2-105 |
Yes |
Yes |
Yes |
Interesting prohibition
against creditor subpeonaing documents related to plan. Must be tax qualified, no residency
required. State is exception creditor. |
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| Texas |
Tex.
Prop. Code § 42.0021 |
Yes |
Yes |
Yes |
Specifically includes
inherited IRAs as well, and even has specific protection for 60 days for 60
day rollovers. |
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| Utah |
Utah Code Ann. §78B-5-505, -508 |
Yes |
Yes |
Yes |
One Year "curing"
denying protection for contributions within one year. Exceptions for spouse/child support,
state/local taxes, employee as creditor for 1 mo. wages |
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| Vermont |
12
Vt. Stat. Ann. § 2740(16) |
Yes |
Yes |
Yes |
One year "curing"
required for protection of contributions within one year of filing
bankruptcy. Protection unclear at best
for nondeductible IRAs. |
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| Virginia |
Va.
Code Ann. § 34-34(B) |
Yes |
Yes |
Yes |
Appears to protect
inherited IRA/403bs, but confusingly, protection is to the "extent
permitted under federal bankruptcy law", which begs question what that
is after Clark v. Rameker. Does this also
limit contributory nonrollover IRAs to $1,245,475 limit? |
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| Washington |
Wash. Rev. Code
§ 6.15.020 |
Yes |
Yes |
Yes |
Only for Washington
citizens. Protection extended to
tracing even after assets distributed outside IRA/plan per recent legislation
overruling Anthis
case. |
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| West Virginia |
W.V. Code Ann. 38-8-1, 38-10-4 (in bankr) |
Yes |
Yes |
No |
IRAs, including SEP-IRAs,
exempt to extent no excess contributions made. Requires residency, tax
qualified. 403bs protected to extent
"reasonably necessary". |
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| Wisconsin |
Wisc. Stat. Ann. § 815.18(3)(j) |
Yes* |
Probably |
Yes |
All IRAs/403bs protected,
but must be "providing benefits by reason of age, illness, disability,
death or length of service", do Roth IRA/403b qualify? Also "owner-dominated plan"
exception (SEP/SIMPLE?). Inherited IRA not protected: In re Clark,
In re Kirchen |
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| Wyoming |
Wyo. Stat. Ann. §1-20-110 |
Yes |
Yes |
Yes |
Must be tax-qualified, only
protected to the extent contributions made "while solvent". |
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| © 2012-2014
Edwin P. Morrow III, constructive criticism or updates appreciated. Edwin_p_morrow@keybank.com or
edwin.morrow3@gmail.com |
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