Supreme Court Rules Inherited IRAs Not Protected in Bankruptcy
The Supreme Court has ruled that funds held in an âinherited IRAâ are not protected from creditors in a bankruptcy proceeding. The Courtâs decision states that while other retirement funds are considered exempt funds, IRA funds that are inherited by a beneficiary do not meet the ordinary definition of retirement funds and the beneficiaries do not have to comply with the same requirements as the original IRA owner. [7/22/14]
