Wage Accounts: Are They Necessary?

Wages paid to the head of household are exempt from creditors, and the wages remain exempt for six month when deposited in a bank account. Many potential debtors set up separate bank accounts which they title as a “wage account” in which they deposit their wages and salary and no other money.

Protection of Hurricane Savings Accounts

One of my clients last week reminded me of an infrequently mentioned financial asset protection tool: the “hurricane account.” Hurricane accounts were established to encourage people to save money to cover uninsured losses from Florida hurricanes.

Wage Account Questions

Two people asked me similar questions today about “wage accounts.” The first question was whether you have to have a separate account titled “wage account” to have your salary or commissions protected after they are deposited in a bank account.

Hurricane Savings Accounts

Florida’s most important statutory exemptions, such as salary for head of household, annuities, and retirement funds, have been in place for a long time. From time to time the legislature adds additional, relatively small, categories of protected assets. A recent addition to Florida’s list of assets protected from creditors are “hurricane savings accounts” now protected …

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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

Health Savings Accounts

My health insurance agent, Mark Boxman, suggested changing medical insurance from a traditional PPO plan to a high deductible plan funded though a Health Savings Account. Naturally, one of my first inquiries was to see if the Health Savings Account is an exempt asset under Florida statutes.

Some Annuities May Not Be Protected

Florida Statute 222.14 protects annuities owned by Florida residents from creditor claims and judgments. Some people have asked whether variable annuities are included under the same statutory protection.

Prohibited Transaction Forfeits IRA Protection

Florida Statute 222.21 protects from creditors financial assets that qualify under specified sections of the Internal Revenue Code to include most IRAs, 401k plans, and other common tax “qualified” retirement plans.

Not All Retirement Plans Are Protected

Retirement plans that are established under a body of federal law referred to as ERISA ( Employee Reitement Security Act of 1974) are protected from creditors pursuant to Florida Statute 222.21.

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