I've heard that IRAs offer a better protection during bankruptcy but i can't find any information about it.

1 Answer 1


According to this article, it seems like 401(k)s have unlimited protection, while IRA's have up to $1m in protection.

It seems like it's kind of complicated. If you are trying to protect more than $1,000,000 in retirement assets during a personal bankrupcy, you can probably afford to have a good lawyer give you advice.

  • I'd also question why you are filing bankruptcy if you have $1M in liquid assets, unless you are Mike Tyson.
    – JohnFx
    Dec 11, 2010 at 18:10
  • @JohnFx: most types of retirement assets can't be taken out early without penalty, so they're not liquid
    – user102008
    Jun 8, 2012 at 19:33
  • They are liquid, it just doesn't make a lot of financial sense to draw on them early except in emergencies. I'd consider an impending bankruptcy an emergency.
    – JohnFx
    Jun 8, 2012 at 21:51

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