Inherited IRAs ruled not exempt in bankruptcy

On June 12, 2014, the United States Supreme Court unanimously ruled that Inherited IRAs are not exempt in bankruptcy.

The United States Supreme Court, in the case of Clark v. Rameker, ruled that Inherited IRAs enjoy no special protection in bankruptcy, unlike IRAs created and funded by the debtor. Even though the Bankruptcy Code exempts qualified retirement plans, IRAs and similar "retirement funds," the Court decided that this bankruptcy exemption for retirement funds does not extend to an Inherited IRA.

Filed under:
USA, Family, Insolvency & Restructuring, Litigation, Reinhart Boerner Van Deuren SC, Bankruptcy, Supreme Court of the United States
Authors:
Christine Rew Barden , Jennifer R. D'Amato , Frederic G. Friedman , John A. Herbers , Jessica King , Nathan K. Johnson
Location:
USA
Firm:
Reinhart Boerner Van Deuren SC