A gold IRA is protected in federal bankruptcy up to $1,711,975 for cases filed on or after April 1, 2025. Money rolled over from a 401(k) or 403(b) plan is protected with no dollar limit (11 U.S.C. 522(n)). Outside bankruptcy, in an ordinary lawsuit, the answer depends on the state you live in. The IRS can reach a gold IRA in every state.
A creditor is anyone you owe money. Bankruptcy is the federal court process that clears or restructures debts you cannot pay. Exempt means creditors cannot take it. A rollover is money moved from an employer plan into an IRA.
Creditor protection is one of the gold IRA rules that the tax code does not write; bankruptcy law and state law do. This page covers the federal cap, the 4 gaps in bankruptcy protection, the state statutes, California, the IRS levy and 6 protective habits.
The metal in the vault changes nothing: the law protects the account, not the asset inside it. This page is general information. A bankruptcy attorney licensed in your state can apply it to your case.
Is a Gold IRA Protected From Creditors?#
A gold IRA is protected from most creditors, but how far depends on 3 things: bankruptcy or not, where the money came from, and your state. An exemption is a law that puts property out of a creditor's reach. A judgment is a court order that says you owe money. A levy is a legal seizure of property to pay a debt.
The table below sorts creditors into 4 kinds and gives the rule for each.
| Who is trying to collect | Can they reach a gold IRA? | The rule |
|---|---|---|
| Any creditor after you file bankruptcy | No, up to $1,711,975 of contributed money; rollover money without limit | 11 U.S.C. 522(b)(3)(C), (d)(12), (n) |
| A creditor with a court judgment, no bankruptcy | Depends on your state: of the 49 statutes read, 41 set no dollar cap and no needs test, and 16 add a look-back on recent deposits | Your state's exemption statute (see the state table) |
| The IRS for unpaid federal tax | Yes | 26 U.S.C. 6334(c) |
| A former spouse or child owed support | Usually yes | 11 U.S.C. 522(c)(1) and most state statutes |
Statutes read October 2026. Alabama and Oklahoma were not read.
Can creditors go after an IRA at all? In most cases they cannot. Find your row first.
Why does a gold IRA get the same protection as any other IRA?#
A gold IRA gets the same protection as any other IRA because the exemption laws name the account and say nothing about what the account holds. The account they name is an IRA under section 408 (the traditional IRA) or 408A (the Roth IRA) of the tax code.
A Roth gold IRA is protected in federal bankruptcy too, because the rule names section 408A. State statutes vary. Of the 49 read, 7 do not name 408A or a Roth IRA in the part read: Alaska, Georgia, Illinois, Massachusetts, New Mexico, West Virginia and Wisconsin.
The Supreme Court confirmed that IRAs can be exempt in Rousey v. Jacoway, 544 U.S. 320 (April 4, 2005).
A custodian is the bank or trust company that legally holds your IRA. A gold IRA is an ordinary IRA whose custodian allows vaulted metal, which is why these laws reach it. One condition applies: the account must stay a real IRA (see "A gold IRA that breaks the rules loses its shield").
The Federal Bankruptcy Cap on IRAs Is $1,711,975 for Cases Filed From April 1, 2025#
The federal bankruptcy exemption for traditional and Roth IRAs is capped at $1,711,975 per person for cases filed on or after April 1, 2025, up from $1,512,350. The cap, an upper limit in dollars, is in 11 U.S.C. 522(n). The Judicial Conference, the federal courts' policy body, set the new amount in a notice dated January 30, 2025 (90 FR 8941). The Federal Register is the government's journal of official notices.
Pages that still say "$1 million" quote the 2005 text of the law. Pages that say $1,512,350 quote the 2022 figure. Neither number applies to a case filed today.
The cap is per person. In a joint case, the law applies "separately with respect to each debtor" (11 U.S.C. 522(m)), so each spouse has a separate cap.
How the cap has grown since 2005#
The cap started at $1,000,000 in 2005 and has been raised 7 times, by 71.2% in total. The law adjusts it for inflation, meaning in step with prices, every 3 years. The table below lists the 8 values and the notice that set each.
| Cases filed from | Cap | Change | Notice |
|---|---|---|---|
| 2005 (as enacted) | $1,000,000 | n/a | Pub. L. 109-8 |
| April 1, 2007 | $1,095,000 | +9.5% | 72 FR 7082 |
| April 1, 2010 | $1,171,650 | +7.0% | 75 FR 8747 |
| April 1, 2013 | $1,245,475 | +6.3% | 78 FR 12089 |
| April 1, 2016 | $1,283,025 | +3.0% | 81 FR 8748 |
| April 1, 2019 | $1,362,800 | +6.2% | 84 FR 3488 |
| April 1, 2022 | $1,512,350 | +11.0% | 87 FR 6625 |
| April 1, 2025 | $1,711,975 | +13.2% | 90 FR 8941 |
Source: adjustment notes to 11 U.S.C. 522; percentages computed by SafeOunce.
The schedule comes from 11 U.S.C. 104(a). It orders a change "at each 3-year interval ending on April 1". The change follows the Consumer Price Index, the government's measure of prices, and is rounded to the nearest $25. The next change is due April 1, 2028, and its amount is not yet set. The cap that applies to you is the one in force on the day your case is filed.
Rollover money does not count toward the cap#
Money you rolled into a gold IRA from a 401(k), 403(b) or other employer plan the statute lists is exempt in bankruptcy with no dollar limit. So is everything that money has earned since. A rollover contribution is money that came from an employer plan, not from your yearly IRA deposits.
The 3 examples below show how the cap works on different mixes of money.
| Your IRAs | Counts toward the cap | Exempt in federal bankruptcy | Exposed |
|---|---|---|---|
| A: $600,000 rolled from a 401(k) + $150,000 of your own contributions | $150,000 | $750,000 | $0 |
| B: $2,000,000 built only from your own contributions and their growth | $2,000,000 | $1,711,975 | $288,025 |
| C: $1,500,000 rollover + $1,900,000 of your own contributions | $1,900,000 | $3,211,975 | $188,025 |
Cases filed on or after April 1, 2025. A court may raise the cap (see below). SafeOunce computation.
The split only works if you can show which dollars were rollovers, so do not commingle (mix) them with yearly contributions. Keep 2 tax forms as proof: Form 1099-R, the old plan's report of the payout (code G marks a direct rollover), and Form 5498, the IRA custodian's report (box 2 shows the rollover).
A direct transfer from one IRA custodian to another "shall not cease to qualify for exemption ... by reason of such direct transfer" (11 U.S.C. 522(b)(4)(C)). An IRA to gold IRA transfer keeps the protection, but it does not turn contributed money into rollover money. The carve-out lists employer-plan rollovers only.
SEP and SIMPLE gold IRAs are outside the cap#
The dollar cap does not apply to a SEP IRA or a SIMPLE IRA, because 11 U.S.C. 522(n) covers IRAs "other than a simplified employee pension ... or a simple retirement account". A SEP IRA and a SIMPLE IRA are employer-funded IRAs used by self-employed people and small firms. Both are exempt in bankruptcy as retirement funds under 11 U.S.C. 522(b)(3)(C) and (d)(12).
Outside bankruptcy, state law varies; Connecticut and Louisiana name both in their statutes. How a SEP gold IRA is funded is covered on its own page.
When a court can raise the cap#
A bankruptcy judge may raise the cap for one debtor, because 522(n) says the amount "may be increased if the interests of justice so require". The statute does not define that phrase. Treat $1,711,975 as the working number. An increase is an exception that a lawyer would have to argue in your own case.
What Does Bankruptcy Not Protect in a Gold IRA?#
Bankruptcy does not protect 4 things: an inherited IRA, tax and family support debts, an account that broke the IRA rules, and money or metal already taken out. The 4 gaps in the bankruptcy shield are listed below.
- Inherited IRAs: money left to you by someone other than your spouse.
- Tax and support debts: certain taxes, child support and alimony.
- Broken accounts: an IRA that lost its status through a prohibited deal.
- Withdrawals: cash or coins that left the IRA, depending on your state.
Inherited gold IRAs: Clark v. Rameker (2014)#
An IRA you inherited from someone other than your spouse is not protected in federal bankruptcy. The Supreme Court held so in Clark v. Rameker, No. 13-299, 573 U.S. 122 (June 12, 2014). An inherited IRA is an IRA that passed to you when its owner died. The Court ruled that the money in it is not "retirement funds", the words the exemption uses.
The Court gave 3 reasons, quoted below.
- The holder "may never invest additional money in the account".
- Holders "are required to withdraw money from such accounts, no matter how many years they may be from retirement".
- The holder "may withdraw the entire balance of the account at any time ... without penalty".
Heidi Heffron-Clark inherited the IRA from her mother in 2001. She filed bankruptcy in October 2010 with about $300,000 left in it. The decision was unanimous. A spouse who inherits has other options under the tax code; ask before you file.
State law can be kinder. Of the statutes read, 11 name inherited accounts as protected, including Florida, Texas, Arizona and North Carolina. What heirs must do with an inherited gold IRA, including the withdrawal deadlines, is a separate set of rules.
Taxes and family support still reach an exempt IRA#
Even an exempt gold IRA can be reached for certain tax debts and for child support or alimony, because 11 U.S.C. 522(c)(1) keeps exempt property liable for those debts.
Exempt property also stays subject to "a tax lien, notice of which is properly filed" (522(c)(2)(B)). A tax lien is the government's legal claim on your property. Most state statutes repeat the support exception, as the "Not protected from" column of the state table shows.
A gold IRA that breaks the rules loses its shield#
The exemptions protect a real IRA, so an account that stops being an IRA can lose its creditor protection as well as its tax break. A prohibited transaction is a deal between the IRA and its owner or the owner's family. Self-dealing means using IRA property for your own benefit.
A creditor's lawyer would look for 2 things in a metals account. The first is home storage: IRA coins kept at home. The Tax Court treated that as a taxable distribution in McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021), an opinion of the U.S. Tax Court. A home storage gold IRA turns IRA coins into personal property that no IRA exemption covers.
The second is a pledge. If you use the IRA as security for a loan, "the portion so used is treated as distributed" (26 U.S.C. 408(e)(4)).
One appeals court has denied the exemption for this kind of conduct, in Yerian v. Webber (In re Yerian), No. 18-10944, 927 F.3d 1223 (11th Cir. June 26, 2019). It was not a gold case. Keith Yerian opened a self-directed IRA in 2012 whose main asset was an LLC, a small private company. He titled IRA-owned cars in his own and his wife's names and used an IRA-bought condo for personal travel.
The court held that he "forfeited his exemption when he engaged in self-dealing transactions prohibited by the IRA's governing instruments". The governing instrument is the IRA's own contract. The outcome: the exemption under Fla. Stat. 222.21 was denied, and the ruling was affirmed on appeal. Florida ties its exemption to an account "maintained in accordance with" that contract.
The full list of IRA prohibited transactions for metals shows which deals end the account.
Money and metal you take out of the IRA#
Once cash or coins leave the gold IRA as a distribution, the protection often shrinks or ends, and the rule depends on your state. A distribution is any withdrawal, in cash or in metal. In federal bankruptcy, a distribution keeps its exemption in 2 cases: it is an eligible rollover distribution, or you redeposit it within 60 days (11 U.S.C. 522(b)(4)(D)).
State rules differ (statutes read October 2026). Texas keeps distributed amounts exempt "for 60 days after the date of distribution", and longer if you roll them over (Tex. Prop. Code 42.0021). Georgia protects IRA funds from garnishment, a court order that takes money to pay a debt, only "until paid or otherwise distributed" (O.C.G.A. 18-4-6(a)(2)). Michigan and Rhode Island name "the payments or distributions" as exempt. How gold IRA distributions in cash or metal work, and what they cost, is covered step by step.
IRA Creditor Protection by State: 48 States and DC Read From the Statutes (October 2026)#
Outside bankruptcy, state law decides whether creditors can reach an IRA, and 41 of the 49 statutes read in October 2026 set no dollar cap or needs test. Of the other 8, 5 cap the protection in dollars, 1 ties it to the federal bankruptcy figure and 2 limit it to what you need for support.
Three rows are incomplete. Alabama and Oklahoma show their statute numbers only, because SafeOunce could not open either statute on an official site in October 2026. No count on this page includes them. West Virginia's row is its bankruptcy exemption list; its statute for lawsuit judgments (W. Va. Code 38-8-1) was not read.
ERISA, the 1974 federal law for employer plans, shields a 401(k) but not an IRA. The federal IRA exemption in 11 U.S.C. 522 works only inside a bankruptcy case. A judgment creditor, meaning a creditor who has won a court judgment, meets only your state's statute.
In 36 rows of the full table, the statute number links to the official state site. In 13 rows SafeOunce read a legal publisher's copy, and the row cites the statute number alone.
A needs test means a court decides how much you need to live on. A look-back means recent deposits are not protected. A spendthrift trust is a trust that creditors cannot reach. A QDRO is a court order that splits a retirement account in a divorce, and the alternate payee is the former spouse or child it names.
The first table groups the states by pattern.
| Pattern | States (statutes read October 2026) |
|---|---|
| Dollar cap | Maine $1,054,550; Minnesota $81,000 plus what you need for support (as printed in the statute; it is inflation-adjusted, see the note below); Nevada $1,000,000; North Dakota $200,000 per account and $400,000 in total unless more is needed for support; South Dakota $1,000,000 |
| Tied to federal bankruptcy law | Virginia |
| Needs test only | California (with a floor, see the California section), Nebraska |
| Look-back on recent contributions | Alaska, Arizona, Kentucky, Maine, Michigan (120 days); New York, Wyoming (90 days); Louisiana, Pennsylvania, Utah, Vermont (1 year); Nebraska (2 years); Hawaii (3 years); Massachusetts (5 years, above 7% of income); Montana (contributions after the lawsuit was filed); North Dakota (account in effect under 1 year) |
| Inherited IRAs named as protected | Alaska, Arizona, Delaware, Florida, Missouri, Nevada, North Carolina, Ohio, Texas, Utah, Wyoming |
Computed by SafeOunce from the 49 statutes in the table below.
The second table lists every state and DC in alphabetical order.
| State | Statute | IRA protection as written | Limits and look-backs | Not protected from | Roth named |
|---|---|---|---|---|---|
| Alabama | Ala. Code 19-3B-508 | Statute not yet read; see Ala. Code 19-3B-508 | n/a | n/a | n/a |
| Alaska | Alaska Stat. 09.38.017 | Interest in a retirement plan exempt; beneficiaries by death and lifetime transferees of an IRA covered | Contributions within 120 days before bankruptcy | Alternate payee under a QDRO | Not seen in the part read (publisher copy) |
| Arizona | Ariz. Rev. Stat. 33-1126(B), (D) | Plans under 408 and 408A "exempt from all claims of creditors", including an interest that "arises by inheritance" | Contributions within 120 days before bankruptcy | QDRO alternate payee; child support arrears | Yes (408A) |
| Arkansas | Ark. Code 16-66-220 | IRA exempt "from attachment, execution, and seizure" unless it does not qualify under the tax code | Contributions above the deductible amount and their earnings (rule does not apply to Roth IRAs) | n/a | Yes (408(A)) (FindLaw, updated 2024-03-28) |
| California | Cal. Code Civ. Proc. 704.115 | Exempt "only to the extent necessary" for retirement support | Floor of $1,711,975 for personal debt since 2025-01-01 | Child, family and spousal support (court decides); fraudulent transfers | Yes (408A) |
| Colorado | Colo. Rev. Stat. 13-54-102(1)(s), (3), (4) | IRA and Roth IRA exempt, no limit as to amount | None stated | Child support arrears; judgments against a person convicted of felonious killing | Yes (public.law mirror, 2024 C.R.S.) |
| Connecticut | Conn. Gen. Stat. 52-321a | IRA exempt "to the extent funded" by a rollover from a qualified plan or by annual contributions within the section 219(b) limits; Roth IRA, SEP and SIMPLE named | Contributions above the annual limits | QDRO alternate payee; state recovery of incarceration costs | Yes |
| Delaware | Del. Code tit. 10, 4915 | Assets in any retirement plan under 408 or 408A exempt, including accounts left by a decedent | 60-day window for amounts in the course of a rollover | Family court relief (Title 13, chs. 5 and 15); QDRO alternate payee | Yes |
| District of Columbia | D.C. Code 15-501(a)(9) | Interest in a plan qualified under 408 or 408A exempt | Contributions above the deductible or Roth limit, and their earnings | QDRO alternate payee; claims by the District | Yes |
| Florida | Fla. Stat. 222.21(2) | IRA "exempt from all claims of creditors" if maintained in accordance with a plan or governing instrument that is or would be tax-exempt; inherited IRAs covered | Account must stay in substantial compliance (see Yerian) | QDRO alternate payee; surviving spouse's elective share | Yes (408A) |
| Georgia | O.C.G.A. 18-4-6(a)(2); 44-13-100(a)(2.1)(D) | IRA funds "exempt from the process of garnishment until paid or otherwise distributed"; bankruptcy list covers an IRA "within the meaning of" 408 | After distribution, protected only like wages | n/a in the parts read | 408A not named in 44-13-100(a)(2.1)(D) (FindLaw mirror) |
| Hawaii | Haw. Rev. Stat. 651-124 | Rights under plans described in 408 and 408A exempt from "any legal process" | Contributions within 3 years before bankruptcy or before a civil action is initiated | QDRO | Yes (408A) |
| Idaho | Idaho Code 11-604A | Plans under 408 and 408A exempt from "any legal process whatever" | None stated | Child support collection; QDRO and court support orders | Yes |
| Illinois | 735 ILCS 5/12-1006 | IRA exempt if "intended in good faith to qualify as a retirement plan"; conclusively presumed a spendthrift trust | None stated | None stated | "individual retirement account" (408A not cited) |
| Indiana | Ind. Code 34-55-10-2(c)(6) | Exempt to the extent of contributions not taxed when made or made to a Roth IRA, their earnings and rollovers | After-tax non-Roth contributions | n/a in the part read | Yes (FindLaw mirror) |
| Iowa | Iowa Code 627.6(8)(f) | Rollovers and transfers from ERISA plans and between IRAs exempt "in any amount"; own contributions exempt up to the deductible maximum per year, earnings prorated | Contributions above the yearly maximum | QDRO beneficiaries; child support; alimony | Yes |
| Kansas | Kan. Stat. 60-2308(b), (c) | Plans under 408 and 408A "exempt from any and all claims of creditors"; conclusively presumed a spendthrift trust | None stated | QDRO alternate payee; child support orders | Yes |
| Kentucky | Ky. Rev. Stat. 427.150(2)(f) | Interest in an IRA under 408 or 408A exempt | Contributions within 120 days before bankruptcy, or before the earlier of judgment or levy | Maintenance; child support | Yes (2016 Justia PDF; statute effective 2015-01-01) |
| Louisiana | La. Rev. Stat. 13:3881(D) | All IRAs "of any variety or name", Roth, SEP and SIMPLE exempt "from all liability for any debt" | Contributions less than 1 calendar year before bankruptcy or before writs of seizure | Alimony; child support | Yes (FindLaw, updated 2023) |
| Maine | Me. Rev. Stat. tit. 14, 4422(13-A) | Retirement funds under 408 and 408A exempt "up to an aggregate value of $1,054,550" | Contributions within 120 days before bankruptcy, judgment or levy | Child and spousal support | Yes |
| Maryland | Md. Code, Cts. & Jud. Proc. 11-504(h) | Plans under 408 and 408A "exempt from any and all claims of the creditors" | Contributions above the deductible or Roth limit, and their earnings | QDRO alternate payee; Maryland Department of Health | Yes |
| Massachusetts | Mass. Gen. Laws ch. 235, 34A | IRA "shall not be attached or taken on execution" | Sums deposited in the 5 years before bankruptcy or judgment above 7% of total income for that period (rollovers left out) | Divorce, separate maintenance and child support orders; criminal restitution | "Individual Retirement Account" (408A not cited) |
| Michigan | Mich. Comp. Laws 600.6023(1)(j) | IRA under 408 or 408a and "the payments or distributions" exempt | Contributions within 120 days before bankruptcy; contributions above the deductible amount (rollovers left out) | Divorce and child support orders | Yes |
| Minnesota | Minn. Stat. 550.37, subd. 24 | IRA and Roth IRA exempt "up to a present value of $81,000" plus amounts "reasonably necessary for the support of the debtor and any spouse or dependent" | Dollar figure adjusted on July 1 of even years (subd. 4a); current adjusted figure not confirmed | Support orders | Yes |
| Mississippi | Miss. Code 85-3-1(e) | Assets in an IRA (408) or Roth IRA (408A) exempt | None stated in the part read | n/a in the part read | Yes (FindLaw mirror) |
| Missouri | Mo. Rev. Stat. 513.430.1(10)(f) | Plans under 408 and 408A exempt, "including an inherited account or plan" | In bankruptcy: fraudulent funding within 3 years | QDRO alternate payee | Yes |
| Montana | Mont. Code 25-13-608(1)(e) | IRA exempt "to the extent of deductible contributions made before the suit resulting in judgment was filed" and earnings; Roth to the extent of qualified contributions before suit; rollover contributions | Contributions after the suit was filed | See 25-13-608(2) | Yes |
| Nebraska | Neb. Rev. Stat. 25-1563.01 | Exempt "To the extent reasonably necessary for the support of the debtor and any dependent" (plans under 408, 408A) | Not exempt if the plan was set up or amended to raise contributions within 2 years before bankruptcy or judgment | n/a | Yes |
| Nevada | Nev. Rev. Stat. 21.090(1)(r) | "Money, not to exceed $1,000,000 in present value" in an IRA under 408 or 408A, "including ... an inherited individual retirement arrangement" | $1,000,000 | n/a in the part read | Yes |
| New Hampshire | N.H. Rev. Stat. 511:2, XIX | Any interest in a tax-qualified retirement plan, including "individual retirement accounts including Roth IRAs" | Subject to the Uniform Voidable Transactions Act; applies to debts arising after January 1, 1999 | n/a | Yes |
| New Jersey | N.J. Stat. 25:2-1(b) | Property in a "qualifying trust" under 408 or 408A "exempt from all claims of creditors" and excluded from a bankruptcy estate | Preferences and fraudulent conveyances | Child and spousal support; QDRO; punitive damages for manslaughter or murder | Yes (FindLaw, updated 2024-01-01) |
| New Mexico | N.M. Stat. 42-10-1(A)(10), (11) | "an interest in or proceeds from a pension, individual retirement account"; an IRA that would qualify under 26 U.S.C. 408 "or any similar individual retirement account" | None stated in the part read | n/a in the part read | 408A not cited (FindLaw mirror) |
| New York | N.Y. C.P.L.R. 5205(c) | IRA under 408 or 408A treated as a trust created by another person, so exempt | Additions made after the date 90 days before the claim was interposed | QDRO; support, alimony and maintenance orders | Yes (408A) |
| North Carolina | N.C. Gen. Stat. 1C-1601(a)(9) | IRAs and "Roth retirement accounts"; stays exempt when held by later beneficiaries, including an inherited IRA | None stated | n/a in the part read | Yes |
| North Dakota | N.D. Cent. Code 28-22-03.1(7) | Retirement funds under 408 and 408A "in effect for at least one year" | $200,000 per account, $400,000 in total; limit lifts if reasonably necessary for support | Spousal and child support; QDRO | Yes |
| Ohio | Ohio Rev. Code 2329.66(A)(10)(c), (e) | IRA and "Roth IRA" exempt to the extent funded by contributions within the yearly limits and by rollovers; inherited accounts covered in (e) | Assets "deposited for the purpose of evading the payment of any debt" | Support orders (sections 3119-3123) | Yes |
| Oklahoma | Okla. Stat. tit. 31, 1(A)(20) | Statute not yet read; see 31 O.S. 1(A)(20) | n/a | n/a | n/a |
| Oregon | Or. Rev. Stat. 18.358 | IRA under 408 or 408A "conclusively presumed to be a valid spendthrift trust"; exempt "from execution and all other process" | Contributions that are not "permitted contributions" can be attacked as voidable transfers | Support: only 75% of the interest is exempt | Yes (public.law mirror) |
| Pennsylvania | 42 Pa. Cons. Stat. 8124(b)(1)(ix) | Funds under 408 and 408A, their growth and rollovers exempt | Contributions within 1 year before bankruptcy; contributions above $15,000 in a one-year period (direct rollovers left out) | Fraudulent conveyances | Yes |
| Rhode Island | R.I. Gen. Laws 9-26-4(11) | IRA under 408 and 408A "and the payments or distributions" exempt | Excess contributions under section 4973 | Divorce, separate maintenance and child support orders | Yes |
| South Carolina | S.C. Code 15-41-30(A)(13) | IRAs under 408(a) and 408A exempt, whether held "as a participant, beneficiary, contingent annuitant, alternate payee, or otherwise" | Reduced by "a fraudulent conveyance into" the IRA | n/a | Yes |
| South Dakota | S.D. Codified Laws 43-45-16, 43-45-17 | A person may "select and designate a total of one million dollars" of employee benefit plans (defined to include 408 and 408A) | $1,000,000 | Claims of the state and its subdivisions; QDRO | Yes |
| Tennessee | Tenn. Code 26-2-105(b), (c) | Plans under 408 and 408A "exempt from any and all claims of creditors ... except the state" | None stated | The state; QDRO alternate payee | Yes (FindLaw, updated 2024-01-02) |
| Texas | Tex. Prop. Code 42.0021 | IRA and Roth IRA, "including an inherited" IRA or Roth IRA, exempt | Distributions exempt for 60 days, longer if rolled over; excess contributions under section 4973 | See Tex. Prop. Code 42.005 (child support) | Yes (public.law mirror; last amended eff. 2019-09-01) |
| Utah | Utah Code 78B-5-505(1)(n), (2) | Plans under 408 and 408A, "including an inherited fund or account" | Amounts contributed within 1 year before bankruptcy (direct rollovers left out) | QDRO alternate payee; certain criminal judgments (75B-2-503(2)(c)) | Yes (version effective 2026-05-06) |
| Vermont | Vt. Stat. tit. 12, 2740(16) | IRA exempt "to the extent that contributions thereto were deductible or excludable" plus growth; Roth within the 408A limits | Contributions less than 1 calendar year before bankruptcy | Child support: exemption limited to $5,000 against the Office of Child Support | Yes |
| Virginia | Va. Code 34-34 | Exempt "to the same extent permitted under federal bankruptcy law for such a plan" (plans under 408, 408A) | So $1,711,975 for contributed IRA money | Alternate payee; child and spousal support | Yes |
| Washington | Wash. Rev. Code 6.15.020(3), (4) | IRA under 408 and Roth IRA under 408A exempt from "any legal process whatever" | None stated | Child support collection; QDRO and support orders; taxes under Title 82A RCW | Yes |
| West Virginia | W. Va. Code 38-10-4(i)(5) (bankruptcy list) | "funds on deposit in an individual retirement account ... regardless of the amount of funds" | Amounts subject to the excess-contribution tax (4973) | n/a | 408A not cited. Non-bankruptcy statute (38-8-1) not yet read |
| Wisconsin | Wis. Stat. 815.18(3)(j) | IRA assets and payments exempt if the plan "complies with the provisions of the internal revenue code" | Owner-dominated plans of owner-employees: only what is reasonably necessary for support | Child support, family support, maintenance; divorce judgments | "individual retirement account" (408A not cited) |
| Wyoming | Wyo. Stat. 1-20-110 | Interest in a retirement plan under 408 or 408A exempt; beneficiaries by death covered to the same extent | Contributions within 90 days before bankruptcy | QDRO alternate payee | Yes |
Statutes read October 2, 2026. Summaries describe each statute's words, not court decisions. "Mirror" and "FindLaw" mark rows read on a legal publisher's copy of the code.
Courts interpret these laws, and details such as tracing and timing can change the result. Treat your row as the question to bring to a lawyer in your state, not as the answer.
States with a dollar cap or a needs test#
Of the 49 statutes read, 8 limit how much of an IRA is protected outside bankruptcy: 5 by a dollar cap, 1 by the federal bankruptcy figure and 2 by a needs test. In Nebraska, an IRA is exempt "To the extent reasonably necessary for the support of the debtor and any dependent" (Neb. Rev. Stat. 25-1563.01).
North Dakota's cap lifts "to the extent this property is reasonably necessary for the support of the resident" (N.D. Cent. Code 28-22-03.1(7)). The count of 8 leaves out 2 narrower limits in the table: Wisconsin's needs test for owner-dominated plans and Pennsylvania's $15,000 yearly limit.
Older 50-state charts online still show limits that the statutes no longer contain. Examples are a $25,000 yearly-benefit limit in Virginia, $500,000 in Nevada, $100,000 and $200,000 in North Dakota, and "no IRA exemption" in Wyoming. The statutes read in October 2026 say otherwise, which is why 36 rows above link to the law.
Minnesota's statute prints $81,000 and orders the figure adjusted for inflation on July 1 of even-numbered years (Minn. Stat. 550.37, subd. 4a). An adjustment was due on July 1, 2026, and SafeOunce has not confirmed the new figure. Check it with the Minnesota Department of Commerce.
States that do not protect recent contributions#
Of the 49 statutes read, 16 leave recent deposits unprotected, with look-backs from 90 days in New York and Wyoming to 3 years in Hawaii. Massachusetts looks back 5 years for large deposits. The purpose is to stop people from moving cash into an IRA when a lawsuit or bankruptcy is close.
Hawaii excludes contributions made "within the three years before the date a debtor files for bankruptcy" or before a civil action starts (Haw. Rev. Stat. 651-124). Pennsylvania has a 1-year look-back and also excludes amounts above $15,000 contributed "within a one-year period". It leaves direct rollovers from exempt funds out of both limits.
Not every look-back applies to a lawsuit. In 7 of the 16 rows, the look-back as written counts back from a bankruptcy filing only: Alaska, Arizona, Michigan, Wyoming, Pennsylvania, Utah and Vermont.
A second group protects only contributions within the tax-code limits: Connecticut, Iowa, Ohio, Vermont, Michigan, Maryland and DC are examples. Excess contributions and their earnings are exposed there. A gold IRA funded by one large rollover rarely meets this problem, because those statutes name rollovers as protected.
Which state's law applies to you?#
In bankruptcy, the state exemptions that apply are those of the state where you have lived for the 730 days before you file. Your domicile is your permanent home state.
People who moved within those 730 days use the state where they lived for most of the 180 days before that period. In bankruptcy, the federal IRA exemption of 522(b)(3)(C) is available on top of the state list. That is why the federal cap matters in every state.
Outside bankruptcy, courts decide which state's law applies. Ask a lawyer if you have moved or been sued in another state.
California: IRAs Are Exempt Only to the Extent Necessary for Retirement Support, With a $1,711,975 Floor for Personal Debt Since January 1, 2025#
California exempts an IRA only "to the extent necessary" for retirement support. Since January 1, 2025, that amount cannot be less than $1,711,975 when the debt is a personal debt. Both rules are in California Code of Civil Procedure section 704.115, subdivision (e). Assembly Bill 2837 amended it (Stats. 2024, ch. 514, effective January 1, 2025). A judgment debtor is the person who owes money under a court judgment. A personal debt is a debt from a personal, family or household purchase or loan.
The usual one-line summary, that California protects IRAs "only to the extent necessary", now leaves out the floor. It also never applied to employer plans. A private retirement plan, meaning a plan set up by an employer, is exempt under subdivision (b) without a needs test.
The floor rises with each federal adjustment, because the statute points to the 522(n) amount as adjusted. The next change is due April 1, 2028. Roth IRAs are covered, because subdivision (a)(3) reaches IRAs under sections 408 and 408A.
What changed in California on January 1, 2025#
Since January 1, 2025, a California IRA owner sued over a personal debt starts with $1,711,975 protected; under the statute's amendment history, earlier cases had only the needs test. The table below compares the 2 periods.
| Question | Through December 31, 2024 | From January 1, 2025 |
|---|---|---|
| Test for an IRA | Needs test, no minimum | Needs test, with a minimum for personal debt |
| Minimum protected | None | $1,711,975 (the 522(n) amount, as adjusted) |
| Counted how | Per case, by the court | Aggregated across all retirement plans in your name |
| Debts covered by the minimum | n/a | "Personal debt": money owed from a transaction "primarily for the debtor's personal, family, or household purposes" (CCP 683.110(d)(3)) |
| Tax on a forced withdrawal | Court adds what is needed for federal and state income tax (704.115(e)(3)) | Same |
Source: Cal. Code Civ. Proc. 704.115 as amended by Stats. 2024, ch. 514; comparison by SafeOunce. The 2024 column follows the statute's amendment line; SafeOunce did not open the pre-2025 text.
When a court sets the exempt amount, it adds the federal and state income tax a withdrawal would cause (704.115(e)(3)). Periodic payments from the IRA are treated like wages under subdivision (f).
The floor does not cover every judgment. CCP 683.110(d)(2) says the debts covered do "not include debts incurred due to or obtained by tortious or fraudulent conduct". A tort is a wrongful act that injures someone. Under the statute's wording, a judgment for an injury you caused, a fraud judgment or a business debt falls back on the needs test alone. That is SafeOunce's reading of the text, not a court ruling.
Two more limits apply. Child, family and spousal support follow their own rule in subdivision (c). The exempt amount "may be reduced" for a fraudulent transfer: property moved "with the intent to hinder, delay, or defraud a creditor".
A California filer in bankruptcy has three routes#
In bankruptcy, a California resident is not limited to the needs test, because the Bankruptcy Code adds its own IRA exemption for people who use state exemption lists. The table below sets the 3 routes side by side, under the wording of the statutes.
| Route | What it protects | Limit | Source |
|---|---|---|---|
| California's regular list | IRA to the extent necessary for retirement support; floor of $1,711,975 for personal debt | Needs test above the floor | CCP 704.115(e) |
| California's bankruptcy-only list | A payment under an IRA or similar plan "to the extent reasonably necessary for the support of the debtor and any dependent" | Needs test | CCP 703.140(b)(10)(E) |
| Federal retirement-funds exemption | "retirement funds ... in a fund or account that is exempt from taxation under section ... 408, 408A" | $1,711,975 for contributed IRA money; no cap on rollover money | 11 U.S.C. 522(b)(3)(C), (n) |
Comparison by SafeOunce from the statute texts; no California court decision was read.
To opt out means a state tells its residents to use the state list, not the federal one. California has opted out of the federal list in 522(d). That list's exemptions "are not authorized in this state" (CCP 703.130). The retirement-funds exemption sits in a different place, 522(b)(3)(C). That paragraph belongs to the path used by people who claim state exemptions.
How the routes combine in a real case is a question for a California bankruptcy attorney.
Can the IRS Take Your Gold IRA?#
Yes: the IRS can levy a gold IRA for unpaid federal tax in every state, because an IRA is not among the 13 kinds of property exempt from levy.
The only retirement items in the list are certain railroad annuities, Medal of Honor pensions and military survivor annuities (26 U.S.C. 6334(a)(6)). The IRS manual lists IRAs among the "employer and self-sponsored retirement vehicles that are not exempt from levy" (IRM 5.11.6.3).
The levy goes to the IRA's custodian; gold IRA custodians sell metal through a dealer to raise the cash. The IRA receives the dealer's bid price, the price a dealer pays when it buys, not what you paid.
State tax agencies have their own collection powers. Some statutes in the table name the state or its taxes as an exception, for example Washington, Tennessee, South Dakota and DC.
The IRS's own 3-step test before it levies a retirement account#
The IRS tells its own collectors to take 3 steps before levying a retirement account, and to stop if your conduct has not been "flagrant". The steps are in Internal Revenue Manual 5.11.6.3, revised March 14, 2024. The manual is the IRS's staff handbook. Flagrant means openly and knowingly wrong. The 3 steps are quoted below.
- Other assets first: "If there is property other than retirement assets that can be used to collect the liability, or if a payment agreement can be reached, consider these alternatives".
- Flagrant conduct: "If the taxpayer has not engaged in flagrant conduct, do not levy on retirement accounts."
- Dependence on the money: "If the taxpayer is dependent on the funds in the retirement account (or will be in the near future), do not levy the retirement account."
The manual gives 13 examples of flagrant conduct. The 4 examples below are quoted from it.
- Taxpayers "who voluntarily contributed to retirement accounts during the time period the taxpayer knew unpaid taxes were accruing".
- Taxpayers "convicted of tax evasion for the tax debt".
- Taxpayers "assessed with a fraud penalty for the tax debt".
- Taxpayers "who have placed other assets beyond the reach of the government".
The manual guides IRS staff; it is not a right you can enforce in court. It shows that a levy on an IRA is the IRS's last step, not its first. The manual does not count inherited IRAs as retirement funds.
What a levy costs in tax#
A levy on a traditional gold IRA counts as a taxable distribution, but the 10% early-withdrawal penalty does not apply to it at any age. The penalty's formal name is the 10% additional tax. It normally applies to withdrawals before age 59 1/2. The tax code exempts distributions "made on account of a levy under section 6331 on the qualified retirement plan" (26 U.S.C. 72(t)(2)(A)(vii)). IRS Publication 590-B lists the same exception: "The distribution is due to an IRS levy of the IRA".
The levy rule is one of the exceptions to the gold IRA early withdrawal penalty.
What Changes When 401(k) Money Becomes a Gold IRA?#
Rolling a 401(k) into a gold IRA keeps unlimited protection in bankruptcy but, outside bankruptcy, swaps one federal rule for your state's rule. The table below compares the same money in the 2 accounts.
| Setting | Money in a 401(k) | The same money in a gold IRA |
|---|---|---|
| In bankruptcy | Exempt, no cap (11 U.S.C. 522(b)(3)(C)) | Exempt, no cap, as rollover money (11 U.S.C. 522(n)) |
| Lawsuit judgment, no bankruptcy | Protected in every state by ERISA: "benefits provided under the plan may not be assigned or alienated" (29 U.S.C. 1056(d)(1)) | Your state's IRA statute (see the state table) |
ERISA's anti-alienation rule means the plan may not hand your benefit to someone else. The rule has federal exceptions, such as a QDRO and the IRS. An IRA you open yourself is generally not an ERISA plan, so the rule stops at the rollover.
The change matters most under the 8 statutes with a cap or a needs test.
The other protections given up in a 401(k) to gold IRA rollover, such as the age-55 rule, are listed there.
How to Keep Your Gold IRA's Protection: 6 Habits#
You keep a gold IRA's creditor protection by keeping it a clean, well-documented IRA: 6 habits do most of the work. The 6 habits are listed below.
- Keep rollover money in its own rollover IRA, apart from yearly contributions.
- Keep the Form 1099-R with code G and the Form 5498 with the rollover in box 2. You should hold both for as long as you own the account.
- Leave the metal with the custodian's depository. Never take IRA coins home.
- Never pledge the IRA or its metal for a loan. The pledged part counts as distributed (26 U.S.C. 408(e)(4)).
- Know your state's look-back before you make a large contribution.
- Ask a bankruptcy attorney licensed in your state before you file, move states or settle a lawsuit.
What Else Can Put a Gold IRA at Risk Besides Your Creditors?#
Your own creditors are one risk to a gold IRA; the other 3 are a failed seller, custodian or vault, a divorce, and a government seizure that sales pitches exaggerate.
If the gold IRA company, custodian or depository fails#
A failed seller, custodian or vault is a different question from your own creditors: it turns on whether the metal was already in your IRA's account at the depository. What customers of failed gold IRA companies could recover depended on whether the metal had reached the vault. If the custodian quits, is sold or fails, the IRA moves to a successor custodian. Your rights if a depository fails are explained with the one large case on record.
Divorce and a gold IRA#
A divorce decree can move part of a gold IRA to a former spouse, and creditor exemptions do not block it. A decree is the court's final order in a divorce. Most state statutes in the table carve out support orders and QDROs. Splitting gold IRAs in divorce is tax-free when the decree and the custodian's transfer form are used. The custodian changes the name on the IRA or makes a direct transfer (IRS Publication 590-A).
Questions readers ask about creditors and a gold IRA#
The 4 questions below come up most often next to creditor protection.
Can I lose my IRA if I get sued?#
Under most of the 49 state statutes read, a creditor who wins a lawsuit cannot take your IRA, but 8 set a dollar cap or a needs test, and some leave recent contributions exposed. Being sued and filing bankruptcy use different rules. A lawsuit judgment meets your state's statute alone. Bankruptcy adds the federal exemption and its $1,711,975 cap. Find your row in the state table.
What assets cannot be seized by the IRS?#
The IRS cannot levy 13 categories of property listed in 26 U.S.C. 6334(a), including clothing and school books, certain household goods, tools of a trade, unemployment and workers' compensation benefits, and part of your wages. IRAs and 401(k)s are not on the list.
Can the government confiscate the gold in an IRA?#
No current law orders gold in IRAs to be handed over; the 1933 order that sales pitches cite covered gold held by the public then, decades before IRAs existed. Executive Order 6102 is dated April 5, 1933. Congress created IRAs in ERISA on September 2, 1974. The record of the 1933 order answers can the government confiscate your gold in detail. Whether an IRA or 401(k) can be frozen or seized is a sales pitch with its own fact check.
Is a gold IRA safe?#
A gold IRA is well protected from creditors, but that is not the same as safe from loss. The metal's price moves, the dealer's markup is a cost on day one, and FDIC and SIPC never cover IRA metal. FDIC insures bank deposits and SIPC covers brokerage accounts. The pros, cons and the real downsides are weighed with return data.