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

From Straffi & Straffi Attorneys at Law – “Can I Keep My 401(k) in Bankruptcy? Retirement Accounts Explained for NJ Filers” unpacks how federal and New Jersey laws work together to safeguard your retirement savings during challenging times. This episode explores what happens to a 401(k), IRA, pension, or rollover account when debt feels overwhelming and bankruptcy becomes a real option. You’ll hear how both ERISA and the Bankruptcy Abuse Prevention and Consumer Protection Act create layers of protection so that a fresh financial start doesn’t erase years of planning for the future.

Listeners will discover why the federal shield for employer‑based plans, such as 401(k)s and 403(b)s, stands as a powerful safeguard, and how BAPCPA offers limits for traditional and Roth IRAs while still preserving significant balances. The conversation highlights why funds in ERISA‑protected accounts are excluded entirely from the bankruptcy estate, and how the $1,711,975 limit for IRAs adjusts over time, giving New Jersey filers valuable context for their own decisions.

We’ll also dive into New Jersey‑specific nuances, like choosing between state and federal exemptions, the special treatment for public employee pensions, and the surprising protection offered for inherited IRAs after the Andolino decision. Through examples and scenarios, this episode explains why not all retirement accounts are treated equally and how understanding those categories can keep more of your hard‑earned money secure.

Finally, you’ll hear practical guidance on avoiding common mistakes, such as withdrawing funds before filing or making large last‑minute contributions. Straffi & Straffi Attorneys at Law brings decades of experience guiding individuals through Chapter 7 and Chapter 13 cases, helping them preserve 401(k)s, IRAs, and pensions while navigating bankruptcy with confidence.

Straffi & Straffi Attorneys at Law

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