Sections of Texas Bankruptcy Code
Government 811.005
6243e.2(12)
IRA and Keogh retirement plans for the self-employed are partially exempt under the Texas bankruptcy law. To enjoy this exempt status provided by Texas bankruptcy law, contributions to IRA and Keogh retirement plans must not exceed the maximum contribution amounts exempt from federal income tax. Money and interest earned on tax exempt contributions are also exempt under the Texas bankruptcy law. But money and interest earned on taxed contributions are not protected under this Texas bankruptcy exemption.
For example: If you are self-employed and contribute $20,000 a year to a Keogh plan; but only $10,000 is tax-exempt, the other $10,000 (along with any money earned on it) may not enjoy protection from creditors when filing for bankruptcy. However, if you had multiple qualifying plans and none of them exceeded the tax-exempt limit, your funds may be fully protected under this Texas bankruptcy exemption.