The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/inparadise-quot-31286976.aspx

Subject:  Re: Inherited IRAs Date:  6/12/2014  5:10 PM
Author:  JAFO31 Number:  75204 of 75801

inparadise: "
http://blogs.marketwatch.com/encore/2014/06/12/scotus-inheri......

{{{The Supreme Court on Thursday ruled unanimously that inherited Individual Retirement Accounts are not afforded the same protection from creditors in bankruptcy proceedings as retirement assets held by the original owner,...}}}

Probably bankruptcy is not an issue for any here, but I wonder if this will be the start of the erosion of beneficial treatment for these accounts. There has already been talk by Obama about making beneficiaries take money out within 5 years of inheriting. Something to keep in mind as you plan your asset allocation to different accounts."


Congress could fix this issue if it wante to fix it (though the cynic in thinks that the Congress will not because it will love the tax revenue boost resulting from quicker withdrawals from inherited IRAs).

People with inherited IRAs might even condering withdrawing enough, so that after tax, they can contribute the maximum to their own IRAs, 401-k plans, Keough plans, etc. The income tax paid is the vig for gaining bankruptcy protection.

Regards, JAFO
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us