INDIANA #7 law 401K

[kviewdeb]

I live in INDIANA possibly filing next month..............chap 7...........i read where 401 contributions are exempt..........is the entire amt exempt or just up to the limited exemption for a husband and wife filing jointly........?

I read in an attorney "forum" that a husband and wife can only exempt a total of $10,000 total.......the more i read the more confused i become,

thanks

[HHM]

As far as I know, the "contributions" to the 401K are not exempt. But the funds in the 401K are probably exempt.

[hhou812hh]

Just don't rollover your 401k if you happen to leave your job anytime soon. Leave it in the 401k plan. I heard of people that rolled it over due to a job loss while going through ch7 bk proceedings and they lost it since it's considered disposable income. This will however change under the new law. It will be fully exempt even if you do roll it over to an IRA, not that you want to wait for the new law.

Good luck!