Legal Buzz: Bankruptcy & Your Inherited IRA: Part 2

Legal Buzz

Bankruptcy & Inherited IRA’s: Part 2

supreme court labelA spouse may circumvent the Supreme Court’s ruling in Clark v Rameker because a spouse can roll the inherited IRA into the spouse’s own IRA to avoid forfeiture in Bankruptcy.

Spousal IRA heirs are treated differently than non-spousal heirs because of the ability to do a “Rollover” and avoid immediate distribution.

However, a non-spousal heir MUST either withdraw the entire balance within 5 years of the decedent’s death or take out a minimum out each year after the death.

 

If you have inherited an IRA account you should consult with an experienced attorney.

Roland H. Acosta & Associates, PA is a comprehensive boutique law firm located in Winter Park, Florida that can help with most legal issues.   This Blog post is for informational purposes only and is not to be considered legal advice.
 
Read Part 1 of this series on Bankruptcy and Inherited IRA’s.