If you are thinking about filing for bankruptcy, one of your concerns might be what will happen to any retirement accounts you may have. Fortunately, there is an IRA bankruptcy exclusion you might not be aware of.

IRA accounts up to the exemption amount are protected from creditors in bankruptcy. The amount is inflation indexed every three years. As of April 1, 2022, the exemption is increased to $1,512,350, up from $1,362,800 that applied for the prior three years (Federal Register 87 FR 6625, Feb. 4, 2022). The next increase won’t be until 2025.

The Supreme Court ruled unanimously in Clark v. Rameker, SCt., June 12, 2014, 2014-1 USTC ¶50,317 that an inherited IRA is not exempt from credit claims in bankruptcy.