IRA question ...... 8 months into chapter 13

[captainab]

Hello
Please forgive me if this question has already been asked on the forum. I am new to this forum. I filed ch 13 in June of last year. I didn't have any IRA accounts open . Am I allowed to open any IRA now? If yes what will be the process? Any feedback is much appreciated. Thanks...

[despritfreya]

Unless you are a 100% Plan, theoretically the answer is “no”. You are required to devote all of your disposable income to the Chapter 13 Plan therefore you should not have any funds available in which to contribute to an IRA account. Look at it from the creditor’s point of view. . . why should a debtor be allowed to save money when that debtor does not want to pay what is owed to me?

Some jurisdictions will allow a debtor to participate in an employer sponsored 401k. Others will only allow the participation if the debtor is a “below median income” filer. Still others say “no way” (unless mandatory for employment).

To verify if you can or cannot set up an IRA account or contributed to a 401k in your jurisdiction, you really need to ask a local bk attorney.

Des.

[captainab]

Thanks a lot!!