Case: Canadian Retirement Plan Not Exempt From Chapter 7 Bankruptcy Estate (Bankr. N.D. Ill.) (IRC §401)

Debtor cannot claim an exemption for a Canadian retirement account as the account was not created in the United States as required under I.R.C. §401, a bankruptcy court held. Trustee objected to Debtor’s claimed exemption for a retirement account existing in Canada. Illinois is an opt out state. Debtor argued that I.R.C. §404A allows the exemption to stay. To be eligible for exemption, an annuity must come within the Internal Revenue Code provisions for tax-qualified retirement plans including being created or organized in the United States, the court held. Debtor has not shown how his retirement plan, ...