Thursday, February 8, 2007

New Bankruptcy IRA Exemption

I have written a brief description of the new bankruptcy IRA exemption on the Bankruptcy Law Network site. The entry pertains to the one million dollar IRA exemption under the federal bankruptcy exemptions. Here in Massachusetts we are fortunate enough to be able to choose between the Massachusetts and federal exemption scheme in bankruptcy. The new bankruptcy IRA exemption will impact those choosing the federal exemptions, but those who must chose our state exemptions (because of a valuable homestead, for example) the state law IRA exemption is still available. Mass.Gen.L. ch. 235, § 34A exempts IRA account to the extent that the balance of the account does not exceed seven percent of the individual's total income within the five years preceding bankruptcy.