The U.S. Supreme Court held today that inherited IRAs are not “retirement funds” under U.S.C. §522(b)(3)(C), and are not protected from creditors in bankruptcy proceedings. (Clark v. Rameker (June 12, 2014) U.S. Supreme Court, Case No. 13-299)
Bankruptcy laws protect retirement accounts from the reach of creditors, and the lower courts have been inconsistent in determining whether this protection extended to inherited IRAs. Today’s decision makes it clear that is does not. However, this decision only applies to inherited IRAs.
To view the full Supreme Court opinion, go to:
www.supremecourt.gov/opinions/13pdf/13-299_mjn0.pdf
Bankruptcy laws protect retirement accounts from the reach of creditors, and the lower courts have been inconsistent in determining whether this protection extended to inherited IRAs. Today’s decision makes it clear that is does not. However, this decision only applies to inherited IRAs.
To view the full Supreme Court opinion, go to:
www.supremecourt.gov/opinions/13pdf/13-299_mjn0.pdf
