Generally, IRA accounts are not are not exempt. However, in some states an IRA may be excluded from the bankruptcy estate or exempt because of a state statute.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
An IRA is generally not taxable while the funds remain in the account. However, once you reach age 59½, you can begin taking distributions without the 10% early withdrawal penalty. Traditional IRA withdrawals are taxed as ordinary income, while Roth IRA withdrawals can be tax-free if certain conditions are met. Always consult a tax professional for personalized advice.
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