Florida law provides creditor protections for certain retirement accounts, but the rules have conditions and exceptions. This overview focuses on Florida Statutes section 222.21 and should not be treated as a guarantee that every IRA or every distribution is protected in every situation.
Florida’s statutory rule
Section 222.21 generally exempts qualifying retirement funds and accounts from creditors’ claims when the account or plan meets the statute’s requirements. The statute also says that qualifying funds do not lose their exempt status after the owner’s death solely because they pass by a direct transfer or eligible rollover to an inherited IRA. It applies to inherited IRAs regardless of when the account was created or the transfer occurred.
The protection is not unlimited. The statute contains exceptions, including claims by an alternate payee under a qualified domestic relations order and certain surviving-spouse elective-share claims. The account’s qualification, ownership, transfer history, distributions, and the facts of a collection or bankruptcy matter can affect the analysis.
Do not move an account based on a general article
This article was originally written in 2011, before later statutory changes clarified the treatment of inherited accounts. A rollover or transfer can have tax and legal consequences, and moving an account to Florida does not by itself establish that Florida law governs every creditor dispute. Before changing an account, obtain advice about the account type, the owner’s residence, applicable law, and any current claims or proceedings.
Asset protection planning should be completed before a claim is anticipated and must comply with applicable transfer, tax, and retirement-plan rules. It should never be used to conceal assets or hinder a known creditor.
This is general information, not individualized legal or tax advice. The statute and case law can change; confirm the law with Florida counsel before relying on it.
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