Legal Question in Bankruptcy in Louisiana

Re: ira question

Short answer -- Your IRA monies are safe.

Under Louisiana law; Revised Statutes 13:3881, tax-deferred accounts like 401K's and IRA's are exempt from creditors. In bankruptcy the Louisiana law has an extra twist. Basically if money was transferred into a tax-deferred account within one year before bankruptcy was filed then the money is not given the protection of bankruptcy and would be "cashed in" to pay creditors. However, transfers from one type of tax-deferred account into another are not subject to this one-year rule. According to your question, you transferred money in the form of a roll-over from a 401K to an IRA. It would not matter if this was done 1 day before filing bankruptcy, according to Louisiana law it is your rightful money that no creditor or bankruptcy trustee can take from you. If you reside in New Orleans/metro I would be pleased to handle your case. ph (800) 303-0720