5

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

6

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.

3
  • I'd also question why you are filing bankruptcy if you have $1M in liquid assets, unless you are Mike Tyson. – JohnFx Dec 11 '10 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 '12 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 '12 at 21:51

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