Submitted by KGreen on Wed, 09/21/2011 - 09:07
Posted in
I read in another post that Massachusetts and federal law provides bankruptcy exemptions for ERISA qualified retirement accounts. I have an IRA but I don't have any idea if it is ERISA qualified. Where can I get that information or who do I talk to to find out if my IRA is qualified? I don't know if it matters, but I think I'll be using the Massachusetts exemptions. Thanks.
ERISA qualified retirement accounts
Yes, under Massachusetts General Laws Chapter 235, Section 34A, ERISA qualified retirement accounts are exempt in bankruptcy proceedings. Usually information regarding your retirement plan's ERISA qualification can be found in the plan summary, information you probably got from your employer when you signed up. If you don't have that information or can't find the ERISA provisions, try calling your retirement plan administrator or your human resources department and ask them to send some information confirming your plan's ERISA qualification.
In general, 401k plans through an employer are ERISA qualified. However, there are a few types of IRAs that are not ERISA qualified, including: (1) plans that you employer does not contribute to; (2) deferred compensation plans; and (3) IRA plans that you started on your own that are not related in any way to your employer. Since you have an IRA, you should go ahead and take the steps described above to determine your plan's status. Good luck.