Can Roth IRA Be Used As Collateral?

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   Matt Benore

   Founder, DenverWest Insurance Professionals, Inc.,

   I have not heard of a ROTH IRA being used as Collateral however, I suppose you might be able to put together a "collateral assignment" which means upon death, the unpaid collateral will be taken out of the value the ROTH is as the time of death with the remaining balance going to your heirs.
   
   I would have to do more research to be sure this would hold up as a contract however.
   You might be better off getting a small life insurance policy to cover that debt if that is indeed what you are covering.

   Answered on October 6, 2014

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