Most retirement accounts are “exempt,” meaning you keep them so long as you do not liquidate or cash out your retirement account immediately before filing bankruptcy. The following types of pensions and retirement funds are exempt in Florida:
- ERISA qualified retirement plans and pensions including 401(k) ‘s, 403(b) ‘s.
- Profit sharing and money purchase plans, SEP and SIMPLE IRAs, and other defined benefit plans) are fully exempt.
- IRA’s and Roth IRAs are exempt up to $1,171,650.
- Benefits payable under the Florida Retirement System. State and County officers and employee’s retirement system benefits.
- Firefighter pensions.
- Municipal police pensions.
- Teachers’ retirement benefits.
Do not withdraw money from your 401(k) or other retirement accounts without consulting your attorney first. Money, while it is in your 401k or other approved retirement account is exempt, meaning you keep it. If you withdraw any funds, they may not be exempt, meaning the trustee will require you to turn over the funds to be dispersed to your creditors.