How Is Your IRA Being Affected by a New Supreme Court Ruling?

July 16, 2014 — An inherited IRA does not have the same protection from creditors as an IRA originally saved for the purpose of retirement.

That’s a result of a recent Supreme Court ruling, says CERTIFIED FINANCIAL PLANNER™ professional Bryan Beatty.

Why does this matter? “Because it could make an impact on your retirement savings,” explains Beatty, a partner with Egan, Berger & Weiner, LLC.

IRAs and Roth IRAs receive what is known as a “retirement funds” exemption under Section 522 of the Bankruptcy Code. This exempts tax-exempt retirement funds from a bankruptcy estate.

Except when it doesn’t.

In this interview on News Channel 8 with reporter Sonya Gavankar, Beatty answers these questions:

1. IRAs and Roth IRAs receive what is known as a “retirement funds” exemption under Section 522 of the Bankruptcy Code. This exempts tax-exempt retirement funds from a bankruptcy estate. But sometimes they don’t. Can you explain why?

2. Does this presents a challenge to the old way of doing things?

3. How does this impact non-spousal IRA beneficiaries?

4. Should we be careful about appointing a general trust as beneficiary?

5. What else should we be aware of?

Click here to watch the video now.

Learn more about Bryan Beatty and Egan, Berger & Weiner, LLC at ebwfinancialnews.com.