Self-Directed IRA LLC offers strong creditor and asset protection for retirement account holders
IRA Financial Group, the leading provider of “checkbook control” Self-Directed IRA LLC structures announces the introduction of the “Checkbook Control” Self-Directed IRA LLC Asset & Creditor Protection Plan.” The “Checkbook Control” Self-Directed IRA LLC Asset & Creditor Protection Plan has been created to offer asset and creditor protection to retirement account holders. “Since retirement assets have become many Americans most valuable assets, we believe it is extremely important that our self-directed IRA clients have the power to protect their hard earned retirement funds from creditors or potential creditors, “ stated Adam Bergman, a tax partner with the IRA Financial Group.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA” or the “Act”) effective for bankruptcies filed after October 17, 2005, gave protection to a debtor’s IRA funds in bankruptcy by way of exempting them from the bankruptcy estate. The general exemption found in section 522 of the Bankruptcy Code, 11 U.S.C. §522, provides an unlimited exemption for IRAs under section 408 and Roth IRAs under section 408A. IRAs created under an employer-sponsored section 408(k) simplified employee pension (a “SEP IRA”) or a section 408(p) simple retirement account (a “SIMPLE IRA”), as well as pension, profit sharing, or qualified section 401(k) Plan wealth transferred to a rollover IRA.
According to Mr. Bergman, Traditional and Roth self-directed IRAs that are created and funded by the debtor are subject to an exemption limitation of $1 million in the aggregate for all such IRAs (adjusted for inflation and subject to increase if the bankruptcy judge determines that the “interests of justice so require”). It is understood that a rollover from a SEP or SIMPLE IRA into a rollover IRA receives only $1 million of protection since such a section 408(d)(3) rollover is not one of the rollovers sanctioned under Bankruptcy Code section 522(n).
Outside of bankruptcy, in the case of a “Checkbook Control” Self-Directed IRA LLC, state law determines whether IRAs (including Roth IRAs) are shielded from creditors’ claims. “Most states provide full asset and creditor protection for self-directed IRA assets, “ stated Mr. Bergman. However, according to Mr. Bergman there are several notable states that do not provide full asset and creditor protection to self-directed IRA assets, including California and Wyoming.”
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading provider of “checkbook control” self-directed IRA LLC retirement solutions. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.
To learn more about the IRA Financial Group please contact a tax expert at 800-472-0646.