Tag Archives: Retirement

What Happens to My Retirement in Bankruptcy?

Retirement plans are one of the few assets that are mostly or completely exempt from the bankruptcy estate. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 protects most types of retirement accounts. If you have a 401k, 457(b), 403(b) or any other ERISA-qualified plan, then your retirement funds are exempt. Government retirement plans and pensions may also be completely protected during bankruptcy. During a Chapter 7 bankruptcy, retirement funds are not used to pay off your creditors. In a Chapter 13 bankruptcy, your retirement funds are not part of the three to five-year repayment plan. These funds do not factor into how much you pay back creditors during your Chapter 13 bankruptcy. However, there are exceptions. With traditional and Roth IRAs, only a portion of the retirement funds are excluded from the bankruptcy estate. As of 2016, this amount is $1,283,025. The amount exempt from bankruptcy changes every…
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5 Ways to Start Saving for Retirement

Saving for retirement is something that many Americans forget to do. A study conducted by the Federal Reserve’s Survey for Consumer Finance in 2013, found that 53% of households aged 55 to 64 had savings in retirement accounts. This means that millions of Americans approach retiring age do not have account savings to rely on. However, there are always options available to start saving soon. It’s never too late to start new financial habits. 5 Common Retirement Saving Options Social security: This government retirement program can be applied for online, and instructions and details about eligibility requirements are included on their website. Pensions: Many workers in the Government, or social services may be eligible for pensions. Talk to your employer about different pension options. 401K: These are employer-sponsored retirement plans that allow tax-free contributions to the account, and employer matching contributions in many cases. IRAs: These are individual accounts that…
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