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? Watch the video now. And learn more about Bryan Beatty and Egan, Berger & Weiner, LLC at ...(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
The recent Supreme Court ruling in the case of Clark v. Rameker has significant implications for individual retirement accounts (IRAs). In this case, the court ruled that funds held in an inherited IRA are not protected from creditors in a bankruptcy proceeding. Previously, many individuals believed that an inherited IRA was protected from creditors similar to a regular IRA. However, the court's decision means that an inherited IRA is not considered a retirement fund and therefore, is not protected under bankruptcy laws. This may leave many individuals with a significant amount of money vulnerable in the event of bankruptcy. The implications of this ruling are also significant for individuals who may be considering passing on their IRA to their heirs. As a result, many individuals who have named children or grandchildren as beneficiaries may need to reconsider their estate planning strategies. One option to protect funds is to withdraw them from the IRA before bankruptcy proceedings begin and holding them in a different type of account. However, this can result in significant tax consequences, including early withdrawal penalties and income taxes. Another option is to consider setting up a trust to hold the IRA funds. By doing so, the individual can ensure that their heirs have continued access to the funds while also protecting them from creditors. There are several types of trust structures to consider, and seeking the advice of a financial professional may be beneficial. It's essential to keep in mind that the ruling only applies to inherited IRAs, which are inherited by non-spouse beneficiaries. Traditional and Roth IRAs held by the account owner or their spouse continue to be protected under bankruptcy laws. In conclusion, the Supreme Court's decision in Clark v. Rameker highlights the importance of careful estate planning to protect retirement assets. Individuals who have named beneficiaries on their IRAs may want to review their strategies to ensure they are adequately protecting their assets and loved ones. Seeking the advice of a financial professional can be helpful in navigating the complexities of estate planning. https://inflationprotection.org/what-is-the-impact-of-the-new-supreme-court-ruling-on-your-ira/?feed_id=99282&_unique_id=64681e30defbb #Inflation #Retirement #GoldIRA #Wealth #Investing #BryanBeatty #EganBergerWeiner #HopeKatzGibbs #InkandescentPublicRelations #LetsTalkLive #SonyaGavankar #InheritedIRA #BryanBeatty #EganBergerWeiner #HopeKatzGibbs #InkandescentPublicRelations #LetsTalkLive #SonyaGavankar
Comments
Post a Comment