72t protected from bankruptcy?
L1: 72t protected from bankruptcy?Is my 72t protected from Chapter 7 bankruptcy. I retired at age 48 (by force due to downsizing) in 2001 and have been taking monthly equal distributions since then. 2008-06-01 19:31, By: Tooyoung2retire, IP: [22.214.171.124]
L2: 72t protected from bankruptcy?Here is an article I found on the web that is related to your question. I googled the topic “IRA and bankrupcty protection” There are several others you might also want to read.
Ken2008-06-02 07:20, By: Ken, IP: [126.96.36.199]
L2: 72t protected from bankruptcy?Hopefully, your posting moniker is not too prophetic!
Assuming that your 72t account is an IRA account, the basic bankruptcy protection is no different than non 72t IRA accounts enjoy. The protection level is heavily driven by the rules for your state of residence, and most states provide considerable protection for IRA accounts.
There are some such as CA that do not provide much protection, and the level of protection is a subjective amount that a court may consider as necessary for basic support for your family. In this case a 72t may provide somewhat of a framework of the amount you need for such support, but this depends on what you are spending the funds on as well.
Some states also apply various portions of the federal bankruptcy act of 2005. That basically means that you must file federal BK to protect your IRA accounts.A closely related issue is not only loss of the account balance, but if some judgementresulted in having to bust your 72t account to meet it and then incur the retroactive penalty back to 2001. See next post where I will post a link toa list ofstates and the protection they providefor IRAs and other types of assets.
2008-06-02 18:32, By: Alan S., IP: [188.8.131.52]
L2: 72t protected from bankruptcy?Link to state asset protection listings:
http://www.assetprotectionbook.com/state_resources.htm2008-06-02 18:33, By: Alan S., IP: [184.108.40.206]