Can I Keep My 401(k) in Bankruptcy? Retirement Accounts Explained for New Jersey Filers - Daniel Straffi

From Straffi & Straffi Attorneys at Law - Can I Keep My 401(k) in Bankruptcy? Retirement Accounts Explained for New Jersey Filers breaks down how bankruptcy law protects retirement savings for individuals and families across New Jersey. This episode explores how 401(k)s, pensions, 403(b)s, traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, and rollover IRAs are treated when someone files for bankruptcy, and why the difference between ERISA protection and BAPCPA exemptions can matter so much. Listeners will also hear how current federal rules for cases filed on or after April 1, 2025, including the $1,711,975 aggregate protection for traditional and Roth IRAs, affect long-term financial planning.

Daniel Straffi, Jr., of Straffi & Straffi Attorneys at Law, walks through the key bankruptcy concepts that matter most to New Jersey filers, including the difference between property excluded from the bankruptcy estate and property claimed as exempt. The discussion highlights how Chapter 7 and Chapter 13 bankruptcies can affect retirement accounts differently, how pension payments and Required Minimum Distributions may factor into the means test, and why 401(k) loan repayments and voluntary retirement contributions can become important issues during a repayment plan. The episode also explains how New Jersey filers may choose between federal bankruptcy exemptions and the state-law and federal nonbankruptcy exemption route under 11 U.S.C. § 522.

The podcast also examines why New Jersey offers unique advantages for some filers, especially those with large IRAs or inherited IRAs. It covers how N.J.S.A. 25:2-1(b) may provide broader protection for qualifying retirement assets, why Clark v. Rameker changed the federal treatment of inherited IRAs, and how In re Andolino created a very different outcome in the District of New Jersey. Listeners in Ocean County, Toms River, Central New Jersey, and Southern New Jersey will gain practical insight into how exemption choices can shape what property they keep and how retirement savings can remain protected even during serious financial hardship.

Finally, the episode warns about costly mistakes people make before filing, such as withdrawing money from a 401(k) or IRA, making unusually large retirement contributions, or trying to pay down a 401(k) loan too quickly before bankruptcy. It also notes the limited situations where retirement funds may still be reached, including IRS levies, federal criminal fines, and Qualified Domestic Relations Orders in divorce matters. With guidance tied to practice in the Clarkson S. Fisher U.S. Courthouse in Trenton and service to clients from the firm’s office at 670 Commons Way, Suite I, Toms River, this episode shows how Straffi & Straffi Attorneys at Law helps protect retirement savings while guiding New Jersey filers toward a more secure financial future.

Straffi & Straffi Attorneys at Law

670 Commons Way, Toms River, NJ 08755, United States

(732) 341-3800

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