Chicago Estate Planning Attorney — Asset Protection Benefits from Retirement Plans
The tax benefits of 401(k)s and IRAs are well-known and widely used among Illinois residents planning a comprehensive estate plan. Furthermore, a well-manicured retirement plan is a great sign of financial security, and there are obvious benefits of having that retirement nest egg.
What most individuals don’t realize, however, is that your retirement plan can also shield your wealth from creditors. In fact, under federal bankruptcy law, the exemption for retirement plan assets is unlimited. If you’re looking to implement comprehensive asset protection strategies to better protect your assets from unforeseen circumstances, Chicago estate planning attorney James C. Provenza can help.
Whether through wills, living trusts, and more, our expert attorneys can provide optimal guidance and counsel for a proactive asset protection plan. Call us today at (847) 729-3939. In the meantime, you can read more about retirement plans below.
Retirement Plans as Exempt Property
Following Congress’s overhaul of the bankruptcy laws in 2005, retirement plans became exempted assets from creditors in bankruptcy cases. However, this also plays a role in how retirement plans are exempted from lawsuits and other predatory acts. Retirement plans subject to these exemptions include any ERISA-qualified pension plans, such as:
- IRAs (Roth, SEP, and SIMPLE)
- “Keogh” plans for “self-employed” individuals
- Profit-sharing plans
- Money purchase plans
- Defined-benefit plans
Keep in mind that there are some limitations. For instance, exemptions for Roth IRAs and IRAs are maxed out at ~$1.2 million per person. Furthermore, retirement benefits that are paid as income are, often, not exempt.
Contact James C. Provenza for Asset Protection and Retirement Strategies
Good estate planning means using the necessary foresight to prepare for unforeseen risks. In most cases, estate planning strategies aim to protect assets and provide directives in the event that you die or become incapacitated. Furthermore, whether through living wills, a variety of trusts, and other techniques, you can employ a variety of intelligent techniques to optimize your estate and provide as much as possible to your beneficiaries.
With the help of Chicago estate planning attorney James C. Provenza, we can help advise and provide counsel on a variety of retirement strategies designed to bolster your nest egg while protecting your assets from unforeseen circumstances.
To speak with attorney James C. Provenza, call our law firm today at (847) 729-3939.