Michigan Retirement Asset Protection Laws

Michigan laws protect the following retirement assets from creditors:

• IRAs or annuity payments, except for contributions within 120 days pre-petition, payments due to divorce, alimony, or child support, and contributions and premiums, including earnings, exceeding the federal deductible amount (does not apply to the rollover of a qualified plan annuity contract);
• interests in qualified ERISA stock bonus, pension, profit-sharing, or other qualified plan or annuity, except for contributions within 120 days pre-petition, court ordered payments related to divorce, alimony, or child support;
• state employee retirement system benefits, except for QDRO payments and obligations to a spouse, former spouse, or child;
• police and firefighters' retirement systems;
• state police retirement system benefits;
• judges' retirement system benefits;
• legislative retirement system benefits;
• public school employees' retirement system benefits; and
• municipal employees' retirement system benefits.

Under a special provision, a debtor subject to judgment under the Michigan Drug Dealer Liability Act is ineligible to exempt property subject to judgment under the Act. Further, such judgment cannot be discharged in bankruptcy.