Is A Variable Annuity Protected From Creditors? 
Only minimal protection exists for annuity contracts under federal bankruptcy laws . Beyond that , the answer will vary by State . Usually annuities have some heightened protection level due to being considered essential for the debtor 's family to maintain a minimum level of well-being and avoid becoming a burden to the State . If an annuity is an IRA , Roth IRA or similar retirement vehicle , it can receive even more protection . Here 's a list of states that offer 100 % exemption of cash values from variable annuities for creditor claims : Arizona , Florida , Hawaii , Maryland , Michigan , New Mexico , Oklahoma and Texas . Kansas offers 100 % exemption after holding the product for one year and Louisiana after nine months . As always , consult a legal representative to see your specific rights in your state . 