§ 704.115.Private Retirement Plan

Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 3. Exempt Property · Last amended 2025 · Last verified July 28, 2026

In one sentenceSection 704.115 broadly exempts private retirement plans, profit-sharing plans, and tax-qualified IRAs and similar accounts, but for personal debt limits that protection to a federal bankruptcy-code floor while otherwise capping it at what's reasonably necessary to support the debtor and dependents after retirement.

Full Text of § 704.115

Text sizeJump to: (a) (b) (c) (d) (e) (f)

(a) As used in this section, "retirement plan" means:

(1) Private retirement plans, including, but not limited to, union retirement plans.

(2) Profit-sharing plans designed and used for retirement purposes.

(3) Self-employed retirement plans and individual retirement annuities or accounts provided for in the Internal Revenue Code of 1986, as amended, including individual retirement accounts qualified under Section 408 or 408A of that code, to the extent the amounts held in the plans, annuities, or accounts do not exceed the maximum amounts exempt from federal income taxation under that code.

(4) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under Sections 403, 414, or 457 of the Internal Revenue Code of 1986, as amended, to the extent the amounts held in the plans, annuities, or accounts do not exceed the maximum amounts exempt from federal income taxation under that code and are not otherwise exempt under federal law.

(b) All amounts held, controlled, or in process of distribution by a retirement plan, for the payment of benefits as an annuity, pension, retirement allowance, disability payment, or death benefit from a retirement plan are exempt.

(c) Notwithstanding subdivision (b), where an amount described in subdivision (b) becomes payable to a person and is sought to be applied to the satisfaction of a judgment for child, family, or spousal support against that person:

(1) Except as provided in paragraph (2), the amount is exempt only to the extent that the court determines under subdivision (c) of Section 703.070.

(2) If the amount sought to be applied to the satisfaction of the judgment is payable periodically, the amount payable is subject to an earnings assignment order for support as defined in Section 706.011 or any other applicable enforcement procedure, but the amount to be withheld pursuant to the assignment order or other procedure shall not exceed the amount permitted to be withheld on an earnings withholding order for support under Section 706.052.

(d) After payment, the amounts described in subdivision (b) and all contributions and interest thereon returned to any member of a retirement plan are exempt.

(e)

(1) Notwithstanding subdivisions (b) and (d), except as provided in subdivision (f), the amounts described in paragraphs (3) and (4) of subdivision (a) are exempt only to the extent necessary to provide for the support of the judgment debtor when the judgment debtor retires and for the support of the spouse and dependents of the judgment debtor, taking into account all resources that are likely to be available for the support of the judgment debtor when the judgment debtor retires.

(2) For personal debt, as defined in subdivision (d) of Section 683.110, the amount necessary to provide for the support of the judgment debtor cannot be, unless otherwise provided by federal law, less than the amount listed in subsection (n) of Section of Title 11 of the United States Code522, as adjusted in accordance with subsection (b) of Section of Title 11 of the United States Code104. The exempt amount may be aggregated across all retirement plans in the judgment debtor's name. The exempt amount may be reduced to the extent that such value is attributable to any portion of any property the debtor disposed of with the intent to hinder, delay, or defraud a creditor, and that the debtor could not have exempted at the time the debtor so disposed of the property.

(3) In determining the amount to be exempt under this subdivision, the court shall allow the judgment debtor such additional amount as is necessary to pay any federal and state income taxes owed as a result of the application of funds in a retirement plan to the satisfaction of the money judgment.

(f) Where the amounts described in paragraphs (3) and (4) of subdivision (a) are payable periodically, the amount of the periodic payment that may be applied to the satisfaction of a money judgment is the amount that may be withheld from a like amount of earnings under Chapter 5 (commencing with Section 706.010) (Wage Garnishment Law). To the extent a lump-sum distribution from an individual retirement account is treated differently from a periodic distribution under this subdivision, any lump-sum distribution from an account qualified under Section 408A of the Internal Revenue Code shall be treated the same as a lump-sum distribution from an account qualified under Section 408 of the Internal Revenue Code for purposes of determining whether any of that payment may be applied to the satisfaction of a money judgment.

End

Plain-English Summary

Private retirement savings get this article's most detailed exemption. "Retirement plan" reaches private and union retirement plans, profit-sharing plans used for retirement, self-employed retirement plans, individual retirement accounts and annuities qualified under the Internal Revenue Code, and retirement funds exempt from federal income tax under specific Internal Revenue Code sections — each up to the maximum amount exempt from federal income taxation. All amounts held or in distribution from a retirement plan for benefits like an annuity, pension, or disability or death benefit are exempt, as are amounts returned to a member after payment, and support obligations get the same carve-out described in § 704.110 for periodic payments.

Subdivision (e) narrows things for the IRA-and-similar category specifically. For those accounts, the exemption is limited to what's necessary to support the debtor after retirement and the debtor's spouse and dependents, considering all resources likely to be available at retirement. But for personal debt, that necessary amount can't fall below the floor set by federal bankruptcy law — 11 U.S.C. § 522(n), as periodically adjusted — aggregated across all the debtor's retirement plans, unless the debtor fraudulently transferred property into the plan to place it beyond a creditor's reach.

The court must also let the debtor keep enough to cover any federal or state income taxes triggered by applying retirement funds to the judgment. And where those amounts are paid periodically rather than in a lump sum, subdivision (f) ties the exempt portion to what the Wage Garnishment Law would allow from an equivalent amount of ordinary earnings.

Frequently Asked Questions

Are my 401(k) and IRA protected from creditors in California?

Broadly, yes. Section 704.115 exempts private retirement plans and IRA-type accounts, though for personal debt the protected amount can't fall below the floor set by federal bankruptcy law, aggregated across all your retirement plans.

Can I lose part of this exemption if I transferred money into a retirement account to dodge a creditor?

Yes. The bankruptcy-code floor doesn't apply to the extent the funds are traceable to property the debtor disposed of with intent to hinder, delay, or defraud a creditor and couldn't have exempted at that time.

Does the court consider taxes when deciding how much retirement money is exempt?

Yes. Subdivision (e)(3) requires the court to allow an additional amount to cover federal and state income taxes owed from applying retirement funds to the judgment.

What if my retirement account pays out periodically instead of in a lump sum?

Section 704.115(f) ties the exempt portion of periodic payments to what could be withheld from a comparable amount of ordinary wages under the Wage Garnishment Law.

Amendment History

Amended by Stats 2024 ch 514 (AB 2837),s 7, eff. 1/1/2025. Amended by Stats 2000 ch 135 (AB 2539), s 16, eff. 1/1/2001. EFFECTIVE 1/1/2000. Amended July 13, 1999 (Bill Number: SB 469) (Chapter 98).

Source & verification. Section text is reproduced verbatim from the California Legislative Information. Enacted by the California Legislature. Last verified July 28, 2026. · Official source

Also known as: 401k ira exemption californiaprivate retirement plan exempt from creditors california