IRA Update From Ed Slott

April 4, 2005

Today, the Supreme Court ruled that IRAs receive Federal Creditor Protection in bankruptcy. This is now the law of the land and a huge victory for IRA owners facing bankruptcy.

The Supreme Court today ruled unanimously that individual retirement accounts are afforded federal protection in bankruptcy proceedings just as qualified plans currently do under ERISA (Employee Retirement Income Security Act of 1974). This decision will make the rollover option possible for anyone keeping their funds in an employer plan just for the creditor protection.  However, a separate provision in the law will exempt the assets only for amounts deemed reasonably necessary for the support of the debtor and his dependents. Look for more details in the May 2005 issue of "Ed Slott’s IRA Advisor".

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By Ed Slott © 2005

Ed Slott’s IRA Advisor 

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