Up until April 15th, a debtor can contribute to an IRA for last year and this year.
Double your pleasure, double your fun.
For an individual under 50, that’s $10,500 that can be sheltered from creditors, thanks to §522(n). Five thousand dollars for 2012, and five thousand five hundred dollars for 2013.
Double that if the debtor is married and the spouse is eligible for an IRA.
If the debtor is over 50, the total contribution for two years is $12,500: $6000 for 2012, $6500 for 2013.
The exceptions and nuances are found in the IRS summary of retirement contribution limits.
Don’t overlook the double contribution window at the first of the year.
Watch out for the impact of pre bankruptcy spend-down on the means test
Image courtesy of Mike Cogh and Flickr.