CLARK ET UX. v. RAMEKER, TRUSTEE, ET AL Decided June 12, 2014

The U.S. Supreme Court has now found that funds in an inherited IRA account are not exempt funds. This decision could have far-reaching and significant impact on people with large sums of inheritance monies held in IRA accounts. In fact, the impact could be financially devastating.

“ Three legal characteristics of inherited IRAs provide objec­tive evidence that they do not contain such funds. First, the holder of an inherited IRA may never invest additional money in the account. 26 U. S. C. §219(d)(4). Second, holders of inherited IRAs are required to withdraw money from the accounts, no matter how far they are from retirement. §§408(a)(6), 401(a)(9)(B). Finally, the holder of an inherited IRA may withdraw the entire balance of the account at any time—and use it for any purpose—without penalty. Pp. 4–6.”

 

Carol A. Lawson, Esq., 28870 U.S. Hwy19 #300, Hodusa Towers, Clearwater, FL 33761             Phone: (727) 410-2705;   email: calh@gate.net