Posted on April 30, 2010.
Can I put my deposit in an IRA cert.of and protect against creditors Chapter 13? it would be revealed sooner or later, and considered a fraud.
if you could, when you go to use it, you pay the penalty of 10% early withdrawal on the total amount of the CD, so no erasing whatever interest you would have - you d be better to conceal the money in your mattress
An IRA contribution must be in cash, so you would probably have to cash the CD before it can contribute to an IRA. IRA and retirement accounts are generally more protected against creditors. But if you take all the cash advances from creditors in case of non-essential too close to bankruptcy, these cash advances are not covered by bankruptcy and you might still owe them.
