{"id":286969,"date":"2021-02-21T09:08:54","date_gmt":"2021-02-21T14:08:54","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/is-your-401-k-or-ira-protected-in-bankruptcy.html"},"modified":"2026-07-29T14:46:18","modified_gmt":"2026-07-29T19:46:18","slug":"is-your-401-k-or-ira-protected-in-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/is-your-401-k-or-ira-protected-in-bankruptcy.html","title":{"rendered":"Is My 401(k) or IRA Protected in Bankruptcy?"},"content":{"rendered":"\n
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Is My 401(k) or IRA Protected in Bankruptcy?<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

401(k)s, IRAs, and most retirement accounts<\/span> are protected in bankruptcy under federal law<\/span>. ERISA<\/span>-qualified<\/span> plans like 401(k)s, 403(b)s, and pensions have unlimited protection, while traditional and Roth IRAs<\/span> are protected up to a certain amount.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

People work hard to build up their retirement accounts<\/span>, 401(k)s, and IRAs. If considering a\u00a0Chapter 7 bankruptcy<\/span><\/a>\u00a0or a\u00a0Chapter 13 bankruptcy<\/span><\/a>, it\u2019s normal to wonder if these savings will be affected. In most instances, you won\u2019t lose your retirement savings<\/span> in bankruptcy, and the bankruptcy court will not force you to withdraw funds to pay creditors.<\/p>\n

There is one major exception. Inherited IRAs<\/span>, other than those from a spouse, are not protected after a 2014 Supreme Court ruling.<\/p>\n

This article explains what happens to your retirement savings<\/span> if you file for bankruptcy and how bankruptcy can impact your retirement accounts<\/span>, such as IRAs, pensions, and 401(k)s. A bankruptcy attorney<\/span><\/a> can answer any additional questions you may have.<\/p>\n

What Retirement Accounts<\/span> Are Protected in Bankruptcy?<\/h2>\n

In general, the courts protect your 401(k) or IRA retirement accounts<\/span> from bankruptcy. Unless there are unusual or extreme circumstances, your retirement funds<\/span> are not part of your bankruptcy estate<\/span><\/a>. The U.S. Bankruptcy Courts will not expect or force you to drain your retirement funds<\/span> as part of your debt relief<\/span> efforts.<\/p>\n

Federal bankruptcy law<\/span> provides two levels of protection for retirement accounts<\/span>: unlimited protection for certain employer-sponsored plans, and capped protection for individual retirement accounts<\/span>. Let\u2019s take a closer look at each level.<\/p>\n

Retirement Accounts<\/span> with Unlimited Protection<\/h3>\n

The following retirement accounts<\/span> are fully protected under federal law<\/span> with no dollar limit:<\/p>\n