Bankruptcy Exemption

• If you go bankrupt, all your assets not exempt by state and federal law are liquidated to pay debts. According to California's tax code Section 408, pensions, stock bonuses, profit sharing and other vehicles for retirement savings, which includes IRAs, are exempt from bankruptcy proceedings.
  
  

Personal Liability

• California law protects IRA and Roth IRAs from creditors in cases of personal liability. However, in California this protection is not as ironclad as in other states. The law protects IRAs and their beneficiaries only as far as the amount deemed necessary to support the beneficiary during retirement. Any excess from what is considered necessary could be deemed as available assets to pay personal liability claims. The exact amount necessary during retirement is up to the discretion of the judge, and will not necessarily be enough to sustain the beneficiary's accustomed lifestyle.
  
  

Named Beneficiaries

• If you die, your IRA-named beneficiaries will receive the money in your retirement account. Whom you should choose as beneficiaries will depend on your circumstances and personal preference. If you are married, you will usually choose your wife as your primary beneficiary. California law requires the consent of your wife if you want to add the name of someone else as your beneficiary.
  
  

IRA Payments To Charities

• California law sometimes allows individuals to use funds in their IRA to make contributions to charities. For instance, during 2010 and 2011, IRA contributors were able to transfer up to $100,00 a year in contributions from their IRA. Although you could not claim a tax deduction for this donation, you were not taxed on it as long as the payment was made directly by your IRA manager and the money did not pass through you.