At Walker & Walker, we are committed to helping you navigate the complexities of bankruptcy while protecting your financial future. One smart and effective strategy we often recommend to our clients is the Roth IRA strategy. This approach can help safeguard your assets before filing for bankruptcy, ensuring that you maximize the protection available to you under the law.
What Is the Roth IRA Strategy?
Before filing for bankruptcy, you may have assets such as cash or non-exempt property that are not fully protected under bankruptcy exemptions. In such cases, transferring these assets into a Roth IRA can provide a layer of protection. Once your funds are in a Roth IRA, they are shielded from creditors during the bankruptcy process, meaning you don’t have to worry about losing those assets.
The Advantage of Roth IRAs
One of the key benefits of a Roth IRA is that you can access the money you originally contributed without paying taxes, even after you’ve filed for bankruptcy. You are allowed to contribute up to $7,000 per year per person (for those 50 and older; $6,500 if under 50), making this a practical way to safeguard additional assets while keeping them accessible if needed.
Protecting More Than Just Cash
Minnesota bankruptcy laws allow you to keep certain essential assets, such as your home and your car, within specific limits. However, if you have assets beyond these protection limits—such as extra cash or a second vehicle—the Roth IRA strategy can be an excellent solution. By transferring those assets into a Roth IRA, you create a secure financial cushion that will remain intact throughout the bankruptcy process.
Why Consider This Strategy?
The Roth IRA strategy aligns with the core purpose of bankruptcy: giving you a fresh financial start while protecting the assets that are most important to you. This approach allows you to preserve critical funds and avoid unnecessary loss of property, giving you greater peace of mind as you move forward.
Timing Is Key
It’s important to take action before filing for bankruptcy to ensure that your assets are protected. At Walker & Walker, we work with clients to develop strategies that fit their specific financial situations. By guiding you through the Roth IRA strategy or other asset protection options, we can help you navigate bankruptcy with confidence and security.
Get Started Today
If you are considering bankruptcy and want to explore how the Roth IRA strategy can protect your financial future, contact Walker & Walker today. Our experienced team is ready to help you secure the fresh start you deserve. Call us today for a FREE phone consultation 612-824-4357.
