Last updated September 18, 2026
Short answer
Funds in many tax-qualified plans receive strong protection under the Bankruptcy Code. Traditional and Roth IRAs have a separate cap in § 522. Inherited IRAs and some non-qualified annuities may not get the same treatment. Do not cash out a 401(k) to pay credit cards before talking to counsel.
11 U.S.C. § 541(c)(2) and § 522(b)(3)(C) / (d)(12) / (n) are the usual starting points, along with Supreme Court cases on ERISA anti-alienation and inherited IRAs. The dollar cap on certain IRAs is inflation-adjusted; we do not reprint the current figure here. See the USTP / official Code text and plan documents.
Do not treat every “retirement” account alike
Brokerage accounts, non-qualified annuities, HSAs, and 529 plans each have different rules. See also inheritances if a death benefit is pending.
How Brock & Stout can help
We identify plan types from statements, apply the correct Code section, and warn against harmful pre-filing withdrawals. We do not guarantee protection of every account labeled retirement.
Frequently asked questions
ERISA plans generally cannot be garnished by ordinary consumer creditors. IRS and some support claims follow different rules. Bankruptcy still requires correct scheduling.
Related resources
- Alabama Bankruptcy Exemptions — Alabama Bankruptcy Exemptions
Alabama debtors generally claim exemptions under Title 6, Chapter 10, not 11 U.S.C. § 522(d). Homestead and personal-property statutes are the core. Some federal exclusions still apply. Amounts change—read the current Code section rather than a reprinted figure.
- Georgia Bankruptcy Exemptions Explained — Georgia Bankruptcy Exemptions Explained
Georgia provides a categorized exemption list. Homestead, vehicle, household goods, and a wildcard are the lines people ask about most. Read the current OCGA text for amounts. Some federal retirement protections still apply on top.
- Inheritances and Bankruptcy — Inheritances and Bankruptcy
If you become entitled to an inheritance, life-insurance proceeds, or a property settlement within 180 days after filing, [§ 541(a)(5)](https://www.law.cornell.edu/uscode/text/11/541) can pull it into the estate even though it arrived later. Failure to disclose can threaten the discharge.
- What Property Can You Keep in Bankruptcy? — What Property Can You Keep in Bankruptcy?
Filing creates a bankruptcy estate, but exemptions can protect property you need. Alabama and Georgia generally require state exemptions rather than the federal list. Whether you keep a house or car also depends on the loan, equity, and which chapter you file.
Not sure whether Chapter 7 or Chapter 13 fits?
We can review your debts, assets, and goals and explain options that may be available under current law.
This page is general educational information about bankruptcy as of the date shown. It is not legal advice, does not create an attorney-client relationship, and does not guarantee results. Outcomes depend on individual facts and current federal and state law. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
