IRA Creditor Protection for State of GA
We have a retired MD who stopped surgery 5 years ago and retired 3 years ago. We want to roll over his Profit Sharing Plan into his IRA to consolidate funds and make RMD’s easier. I know that state law determines if an IRA has creditor protection.
Is anyone familiar with State Law for Georgia about creditor protection for IRA’s?I have read several articles and some say it is protected and others say it is not protected.
Any comments/ references would be helpful.
Thank you
BH
Permalink Submitted by Alan - IRA critic on Fri, 2019-01-11 16:33
Creditor protection websites indicate that traditional (but not Roth) IRAs are exempt from creditors if undistributed. However, distributions from these IRAs are only protected up to the amount considered necessary for the support of the IRA owner. That amount is subjective of course. While GA has a unique provision, it DOES clarify the status of actual distributions (including RMDs), whereas other state’s codes mostly address just the undistribed creditor protection, leaving some uncertainty about distributed amounts.