Turning Assets into Exempt Assets

[danaf]

Out of curiosity - Is there a way to roll my tax refund into a 401k or some other savings instrument that the trustee could not touch?

Or my other thought was putting an entire paycheck into my 401k and then just using the tax refund in lieu of my paycheck.

I honestly have nothing I need to buy.

(I know I can exempt my tax refund on the schedules if I want but I'm just looking into alternatives).

[keepmine]

An IRA would work.

[HHM]

This would have to be something you do BEFORE you actually file.

If you can exempt it, then you have to exempt it, there really is no other way.

The tax refund in lieu of paycheck won't work, the fact that you didn't earn a paycheck that week does not suddenly make the tax refund employment income.

[danaf]

So if I put my tax refund into an IRA, even as short as a month before I file, then the trustee can't touch it and it won't raise a red flag with the trustee?

[ssdsco]

So if I put my tax refund into an IRA, even as short as a month before I file, then the trustee can't touch it and it won't raise a red flag with the trustee?

Yes according to my attorney in my state. Confirm the IRA type and the timing is exempt in your state.

As far as red flags go once the trustee sees you're more sophisticated than the average filer and doing BK pre-planning I'd be prepared for more scrutiny.