Laws with reference to retirement protection can vary from state to state. Take into consideration that many US states will let creditors to seize your retirement savings and IRA account.
California for example is an unreliable state in terms of retirement protection if you are being sued or filing for bankruptcy. Also, if you are being sued for personal injury in this state, your 401(k) will be protected from the prosecutor; but, your IRA will only be guarded up to the point that the court considers necessary.
The judgment will be actually based on a certain threshold that the court says will be sufficient to support you and your dependents in retirement. This should be a red flag for you, because there’s virtually no specific threshold in place and we can’t predict the future.
It is also important to mention that some US states have limited or no laws protecting IRA savings in case of lawsuits. However, the best states for IRA protection in case of a lawsuit are Texas, Washington, and Arizona. In Arizona, only IRA contributions made within 120 days of the lawsuit are exposed to risk by the claimant.
Although there are established distinctions between states, it is essential to understand that the law is never crystal clear. There may not be a simple and complete answer to the outcome of your lawsuit, subject to type of account (Roth IRA, traditional IRA, etc.) and local jurisdiction.