How to Fund IRA During Bankruptcy
- 1). Include your monthly IRA contributions with your other household expenses on Schedule J of the bankruptcy petition. You must also list the value of the IRA on Schedule B and with your other exempt assets on Schedule C of the bankruptcy schedule.
- 2). Fund the account by check, electronic funds transfer from a bank account or automatic deduction from your pay check.
- 3). Contribute the same amount to the IRA as you did before the bankruptcy. Do not increase contributions without seeking approval from the court trustee. You must show why you need to increase the contributions and, if approved, amend your bankruptcy schedules accordingly.
- 4). Keep records of all contributions you make to the IRA to show the trustee if necessary. Depending on how you make contributions, these records include account statements, canceled checks or pay stubs that list the deductions from your pay.
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