1 See Institute Memorandum to Operations Members No. 11-97, Pension Members No. 20-97, Tax
Members No. 17-97, Transfer Agent Advisory Committee No. 23-97 and Pension Operations Advisory
Committee No. 13-97, dated May 23, 1997.
[9204]
September 4, 1997
TO: OPERATIONS MEMBERS No. 17-97
PENSION MEMBERS No. 39-97
PENSION OPERATIONS ADVISORY COMMITTEE No. 32-97
TAX MEMBERS No. 34-97
TRANSFER AGENT ADVISORY COMMITTEE No. 44-97
RE: DELAWARE LAW PROTECTS IRAs IN BANKRUPTCY
______________________________________________________________________________
Delaware earlier this year enacted legislation protecting assets held in qualified
retirement plans, including Individual Retirement Account assets, from execution or
attachment by creditors. Specifically, the legislation protects all IRA and other retirement plan
assets from execution or attachment. It similarly protects eligible rollover distributions from
retirement plans or IRA rollover contributions in the sixty-day period during which such assets
may not actually be in the retirement plan trust or IRA account. Previously, Delaware had no
law protecting IRAs from creditors.
This memorandum updates the 1997 Institute Survey of IRA Protection In Bankruptcy.1
We continue to request that members with news of any relevant legislation or court decisions
regarding the status of IRAs under State bankruptcy and creditor law.
We will keep you informed of developments.
Russell G. Galer
Assistant Counsel - Pension
Attachment (in .pdf format)