Tag Archives: New Jersey Bankruptcy Lawyer

Supreme Court: Inherited IRAs No Longer Protected From Bankruptcy

Morris County Bankruptcy Attorney Explains Inherited IRAs An IRA, or Individual Retirement Account, is a retirement plan that provides tax advantages for retirement savings. Every month that you earn a paycheck, you are entitled to deposit a percentage of your pay into a separate account. Once there, however, your funds must stay put until your retirement, unless you want to pay a decent-sized financial penalty. There is more than one type of IRA, so you will need to research them and decide which one is the best for you. The four primary types are the traditional, the Roth, the SEP (short for Self Employed Person) and the SIMPLE (short for Savings Incentive Match Plan for Employees). Each kind has its own rules as to how it works, but they all share one very important trait: they are exempt from being part of the bankruptcy estate. This means IRAs, under normal circumstances, are out of the reach of…
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