Retirement funds are only protected from judgments while those funds are held in a retirement account. ... Your retirement savings are no longer "judgment proof" after you withdraw them from your retirement accounts.

Can a Judgement take my IRA?

If you live in California and a creditor gets a judgment against you, that judgment creditor may be able to collect from your retirement account. In California, some retirement accounts are protected (such as 401ks and profit-sharing plans). Others are more vulnerable to judgment creditors (such as IRAs).

Are IRAs protected from creditors?

Assets in an IRA and/or Roth IRA are protected from creditors up to $1,283,025. All assets held in ERISA plans are protected from creditors even after they are rolled over to an IRA. Retirement assets are not protected from an IRS levy.