Ask Terry Questions IRA personal liability

IRA personal liability

By Terry Savage on April 16, 2024 | Insurance & Annuities

Terry, is my IRA protected against personal liability lawsuits? Do I need “Umbrella Insurance” for auto and home?

Terry Says

That all depends on your state of residence. Here’s a link to a listing of states and how their laws protect retirement assets.
Some states do protect IRA assets up to $1 million.

But yes, if you have other assets such as a home or valuables, or your IRA, you might want to purchase umbrella liability. Buy it from the same company as your underlying homeowners/auto insurance. It should cost between $300-$500/year per million, less if you have a multi-policy discount.



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