With this amount of money, there is case law where the court allowed the retirement account exemption (which permitted the debtor to keep the retirement account) even where the debtor transferred the money right before filing. However, in the case, the court said that, if the sum was large enough, then the transfer may be considered a fraud on the creditors. Furthermore, there were certain facts in the case upon which the court noted
a)The debtor fully disclosed the timing and the source used to fund his IRA to his creditors and the Trustee in his Statement of Financial Affairs, schedules, and at his creditors’ meeting
b)There was no evidence that the debtor was being sued or threatened with suit at the time of the purchase, nor did he have any judgments pending against him
c)The debtor did not abscond, nor did he transferred property to others prior to filing bankruptcy
d)The Debtor did not borrow any funds to purchase the IRA
e) The funds in question could not be traced to a long-term investment, such as stocks or bonds, which at the last hour the Debtor decided to convert into an exempt asset
f) he maximized his exemptions on counsel's advice;
g)If the debtor would have waited until next year and spent the money, the creditors would receive nothing. Where the debtor has failed to properly disclose assets, the caselaw have denied the exemption to the debtor.