Protection of IRA Accounts Opened Outside Florida
I received an email question concerning protection of IRAs from judgments. The questioner asked whether Florida law protected an IRA owned by a Florida resident that was administered in a financial account opened and maintained by the office of a financial institution located in a state other than Florida. My first reaction was that the IRA was protected because the applicable Florida statute does not require that the IRA account be maintained in Florida or that IRA assets be situated in Florida. Also, I know of know case which required that Florida residents maintain their IRA in Florida in order that the IRA be protected from creditors. To be sure, I check with "Professor" Alan Gassman, Esq., who is the premier scholar on Florida asset protection law, and Alan agrees we me. Therefore, I can believe I can state with reasonable certainty that an IRA owned by a Florida resident is an exempt asset regardless of where the IRA account is opened
I have an ira and i am thinking about surrendering the annuity which funds the ira and putting the funds into a more profitable annuity with another company. I am wanting to take possession of the funds and then cut a check to the desired institution for placement. The reason for this is as follows. The other annuity is not set up in an ira and therefore creates a problem, or does it? If nothing other than the taxes on the interest credited to the annuity, because i am passed my contractual agreement for surrender charges to apply, what are the drawbacks? I set up the Ira almost 11 years ago while living in the state of Florida which has no income tax. (Which also confuses me) I would just like this to be cleared up if you can.
Respectfully,
Jonathan