Less Protection for Inherited IRAsSubmitted by Financial & Estate Advisors on October 28th, 2014
A SCOTUS ruling raises eyebrows. This past summer, the Supreme Court ruled 9-0 that assets held within inherited IRAs by non-spousal beneficiaries do not legally constitute “retirement funds.” Therefore, those assets are not protected from creditors under federal bankruptcy statutes.
This opinion may have you scratching your head. “IRA” stands for Individual Retirement Arrangement, right? So how could IRA assets fail to qualify as retirement assets?