Are Retirement Accounts Exempt from Creditors in Florida?

The exemption applies when the fund or account is maintained under a plan or governing instrument that the Internal Revenue Service has preapproved or determined to be exempt from taxation under the listed federal provisions, which cover qualified plans, individual retirement accounts and certain deferred compensation plans. An account without that approval or determination can still qualify if it is in substantial compliance with the applicable federal requirements, or would have been except for the negligent or wrongful conduct of someone other than the person claiming the exemption.

The plan need not be covered by federal ERISA law. The exemption continues after the owner's death when the funds pass by a direct transfer or eligible rollover excluded from gross income, including a transfer to an inherited individual retirement account. An interest awarded or received in a qualifying transfer incident to divorce is exempt once awarded or received.

There are exceptions. An exempt fund or account is not protected from the claims of an alternate payee under a qualified domestic relations order, or from a surviving spouse's claim under an order determining the amount of elective share and contribution.

A separate part of the statute protects federal pension money received within 3 months before an execution, attachment or garnishment is issued, when the debtor shows it is necessary for the support of the debtor or a family supported by it. Wages are covered by a different exemption, explained in which wages are protected from garnishment in Florida.