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View Full Version : Foreclosure and your assets


maa4546
Apr 19, 2008, 09:14 AM
In the event my home or condo is foreclosed by the bank, can they touch my ira or social security benefits

maa4546
Apr 19, 2008, 09:17 AM
in the event my home or condo is foreclosed by the bank, can they touch my ira or social security benefits should I notify social security?

George_1950
Apr 19, 2008, 01:03 PM
Social Security benefits are not subject to levy, and "The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ... extended significant protections to IRA assets.

"The Act replaced a patchwork of state laws that, depending on where you lived, provided IRAs various levels of protection from creditors. Under current law, all money rolled over to an IRA from a qualified retirement plan and up to $1 million in assets you accumulate through annual IRA contributions are off-limits-- in most cases."
See: IRS Grabs IRA, One-Way Roths, and Conversion Caps (http://www.foxbusiness.com/personal-finance/financial-planning/article/irs-grabs-ira-oneway-roths-conversion-caps_317271_26.html)