Supreme Court Ponders IRA-Bankruptcy Case

http://hosted.ap.org/dynamic/stories/S/SCOTUS_BANKRUPTCY?SITE=NHKEE&SECTION=HOME&TEMPLATE=DEFAULT

Supreme Court Ponders IRA-Bankruptcy Case

By HOPE YEN
Associated Press Writer

WASHINGTON (AP) -- The Supreme Court considered Wednesday how much retirement savings people can shield when they file for bankruptcy, an important question as more Americans go into debt.

The justices heard arguments in the case of a bankrupt Arkansas couple seeking to keep their two Individual Retirement Accounts.

Bankruptcy law already protects pensions, 401(k)s, Social Security and other benefits tied to age, illness or disability. Most justices appeared reluctant to allow the seizure of all the money in IRAs, a nest egg used by millions of people, though Justice Sandra Day O'Connor offered that some accounts might be taken to repay debts.

IRAs allow most investors to contribute up to $3,000 in earned income annually to a fund that grows tax-free until withdrawals. It is the only retirement plan available to the self-employed and small business owners and is typically used by workers between jobs, according to AARP.

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Heres the ??? if your Bankrupt can they tap into your IRA???

moneylenders must get there money!!!

Please continue discussion within the original LBN thread on this topic, which can be found here:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1036767

Thanks!

VolcanoJen
DU Moderator