November 16, 1995
TO: OPERATIONS MEMBERS No. 48-95
PENSION MEMBERS No. 46-95
TAX MEMBERS No. 50-95
TRANSFER AGENT ADVISORY COMMITTEE No. 58-95
RE: 1995 INSTITUTE SURVEY OF IRA PROTECTION IN BANKRUPTCY
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The Institute is pleased to provide you with its first annual survey summarizing the treatment of
individual retirement accounts under state bankruptcy law. This survey is also relevant to the treatment
of IRAs in federal bankruptcy actions, as section 522(b) of the federal Bankruptcy Code references state
law exemption schemes.
The Institute prepared this survey based on information received from the states and other
research of current state legislation and reported bankruptcy opinions. The survey is, however, only a
brief summary of legal principles and standards, and further investigation or consultation with counsel is
recommended. Additionally, please be aware that whether and to what extent IRAs are protected from
creditors in bankruptcy proceedings is a particularly active issue in both the state legislatures and the
courts.
The Institute plans to update this survey on an annual basis, and therefore, we would appreciate
any comments regarding the survey and news of any relevant legislation or court decisions. If you have
any questions regarding the survey, please call the undersigned at (202) 326-5835.
We will keep you informed of further developments.
Russell G. Galer
Assistant Counsel - Pension
Attachment