Inherited IRAs and Bankruptcy Heading to the Supreme Court

Can creditors go after an inherited IRA in bankruptcy? The Supreme Court will examine that issue next Spring when they hear arguments in Clark v. Rameker. The Supreme Court will resolve a split in the Courts of Appeal (the 7th Circuit ruled that creditors do have access to inherited IRAs while the 5th and 8th Circuits ruled they don’t). The issue is important because as the US population ages many IRAs will end up becoming inherited IRAs.

A decision should be released by the end of June.

Tags: ,

Leave a Reply