§ 25-1563.01.Stock, pension, or similar plan or contract; exempt from certain process; when.
Article 15: Execution, Exemptions, and Foreign Judgments · Last amended 1999 · Last verified July 22, 2026
In one sentenceThis section exempts a debtor’s interest in a pension, profit-sharing, stock bonus, or similar retirement plan from bankruptcy and money-judgment collection, to the extent reasonably necessary for the debtor’s support, with exceptions for recently created plans and plans that fail to qualify under federal tax law.
Full Text of § 25-1563.01
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In bankruptcy and in the collection of a money judgment, the following benefits shall be exempt from attachment, garnishment, or other legal or equitable process and from all claims of creditors: To the extent reasonably necessary for the support of the debtor and any dependent of the debtor, an interest held under a stock bonus, pension, profit-sharing, or similar plan or contract payable on account of illness, disability, death, age, or length of service unless:
(1) Within two years prior to bankruptcy or to entry against the individual of a money judgment which thereafter becomes final, such plan or contract was established or was amended to increase contributions by or under the auspices of the individual or of an insider that employed the individual at the time the individual's rights under such plan or contract arose; or
(2) Such plan or contract does not qualify under section 401(a), 403(a), 403(b), 408, or 408A of the Internal Revenue Code.
For purposes of this section, unless the context otherwise requires, insider shall have the meaning provided in 11 U.S.C. 101.
Section 25-1563.01 protects retirement savings from creditors. In bankruptcy and in collecting a money judgment, a debtor’s interest in a stock bonus, pension, profit-sharing, or similar plan or contract, payable because of illness, disability, death, age, or length of service, is exempt from attachment, garnishment, and every other legal or equitable process, and from all claims of creditors. The protection reaches as far as reasonably necessary to support the debtor and any dependent of the debtor.
Two exceptions narrow the exemption. It does not apply if the plan or contract was established, or amended to increase contributions, within two years before bankruptcy or before entry of a money judgment that later becomes final, when the individual or an insider employing the individual controlled that establishment or amendment. It also does not apply if the plan fails to qualify under section 401(a), 403(a), 403(b), 408, or 408A of the Internal Revenue Code, the sections that define tax-qualified plans such as traditional pensions, 403(b) annuities, and traditional or Roth individual retirement accounts.
The two-year lookback targets last-minute maneuvers, someone setting up or juicing a retirement plan on the eve of bankruptcy or judgment specifically to shield assets from a creditor. It does not touch a plan that has been in place and funded in the ordinary course for years before any judgment or bankruptcy arises. The reference to "insider" borrows the federal bankruptcy definition in 11 U.S.C. 101, which generally covers relatives, business partners, and others with a close relationship to the debtor.
Frequently Asked Questions
What retirement plans does section 25-1563.01 protect?
Stock bonus, pension, profit-sharing, and similar plans or contracts payable on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent.
Does this exemption apply in bankruptcy, in ordinary debt collection, or both?
Both. The statute exempts covered plan interests in bankruptcy and in the collection of a money judgment from attachment, garnishment, and other legal or equitable process.
When does the exemption not apply?
When the plan was established, or amended to increase contributions, within two years before bankruptcy or before a money judgment that later becomes final, by or under the auspices of the individual or an employing insider, or when the plan fails to qualify under Internal Revenue Code section 401(a), 403(a), 403(b), 408, or 408A.
What counts as a qualifying plan under this section?
A plan that qualifies under Internal Revenue Code section 401(a), 403(a), 403(b), 408, or 408A, which covers traditional pension and profit-sharing plans, tax-sheltered annuities, and traditional or Roth IRAs.
Why does the statute care whether a plan was created within the last two years?
A plan set up or boosted shortly before bankruptcy or a money judgment raises the concern that the debtor is moving assets out of creditors’ reach on the eve of financial trouble, so the exemption does not extend to that situation.
What does "insider" mean in this section?
The statute borrows the definition from 11 U.S.C. 101, the federal bankruptcy code, which generally includes relatives of the debtor, business partners, and others with a close controlling relationship to the debtor or the debtor’s employer.
Is the entire value of a retirement account always exempt?
The exemption reaches the interest held under the plan to the extent reasonably necessary for the support of the debtor and any dependent, a standard that can require a case-specific determination rather than an automatic full exemption.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
Also known as:nebraska retirement plan exemptionpension exempt from creditors nebraska401k exemption bankruptcy nebraskaira exemption from judgment nebraskatwo year lookback pension exemptionreasonably necessary for support standard