Qualified retirement savings vehicles, including SEP IRA, are protected from creditors in bankruptcy filings.
And more importantly, SEP IRAs are protected to their full amount because they are employer-sponsored instruments.
Other forms of IRA, like Roth IRAs, have an exemption amount of about $1.2 million dollars, so if you’re considering bankruptcy but have high retirement savings, it pays to move them into employer plans like SEP or 401(k).
You’ll have to check with your employer’s plan administrator to see if IRA rollovers are allowed in your case.
There are steps you can take to protect yourself before you file for bankruptcy.
Call Zelenitz, Shapiro & D’Agostino today at 718-599-1111 to learn how to use bankruptcy now to protect your future.