mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
The U.S. Supreme Court on June 7 agreed to decide whether a married couple's individual retirement accounts (IRAs) are protected from bankruptcy proceedings.
At issue in Rousey v. Jacoway (No. 03-1407) is an exemption in the Bankruptcy Code for "stock bonus, pension, profit sharing, annuity or similar plans or contracts," to the extent that the assets are reasonably necessary for the debtor's support. Whether an IRA is a plan similar to a pension, profit sharing or annuity plan has been debated by federal appeals courts. According to the 8th Circuit appeals court in Rousey, IRAs that are rolled over from ERISA-qualified plans into new IRAs are less like exempt retirement plans and more like non-exempt bank savings accounts with favorable tax treatment. Consequently, they are not exempt from creditors in bankruptcy.
A ruling in the case -- which may affect up to the one-third of U.S. households that have traditional IRAs -- is expected in the fall term.
Whenever the supremes start to mess with my IRA $, I get real nervous. :-/
At issue in Rousey v. Jacoway (No. 03-1407) is an exemption in the Bankruptcy Code for "stock bonus, pension, profit sharing, annuity or similar plans or contracts," to the extent that the assets are reasonably necessary for the debtor's support. Whether an IRA is a plan similar to a pension, profit sharing or annuity plan has been debated by federal appeals courts. According to the 8th Circuit appeals court in Rousey, IRAs that are rolled over from ERISA-qualified plans into new IRAs are less like exempt retirement plans and more like non-exempt bank savings accounts with favorable tax treatment. Consequently, they are not exempt from creditors in bankruptcy.
A ruling in the case -- which may affect up to the one-third of U.S. households that have traditional IRAs -- is expected in the fall term.
Whenever the supremes start to mess with my IRA $, I get real nervous. :-/