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Retirement changing its form
1. IRA --> Annuity --> 401k
Last week, I asked about annuities, and whether transferring funds into an
ERISA-type account would protect it. If I understand the answer, they would
not be property of the estate, and thus outside the reach of the Chapter 7
trustee. (right?)
2. 401k --> CD --> IRA
This week, I learned that a separate client, after the consultation, got
spooked by the market and moved their 401k money into a CD. I'm out of wild
card, and thus it's probably at risk. Question: If the former 401k funds now
in a CD are put into an IRA, does that make funds exemptable under Patterson
v. Schumate, 11 USC 522(b)(3) et.al.? I'm guessing that as long as this
happens in six months, it's ok.
1. IRA --> Annuity -->
401k
Last week, I asked about annuities, and whether
transferring funds into an ERISA-type account would protect it. If Iunderstand the answer, they would not be property of the estate, and thus
outside the reach of the Chapter 7 trustee. (right?)
2. 401k --> CD -->
IRA
This week, I learned that a separate client,
after the consultation, got spooked by the market and moved their 401k money
into a CD. I'm out of wild card, and thus it's probably at risk.
Question: If the former 401k funds now in a CD are put
into an IRA, does that make funds exemptable under Patterson v. Schumate,
11 USC 522(b)(3) et.al.? I'm guessing that as long as this happens in six
months, it's ok.
The post was migrated from Yahoo.