Supreme Court Ponders IRA-Bankruptcy Case

[Khephra]

WASHINGTON -- 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 Individual Retirement Account.

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 Americans, though Justice Sandra Day O'Connor offered that some might be taken to repay debts.

IRAs, which can be opened by anyone regardless of employment, allow investors to contribute up to $3,000 annually to a fund that grows tax-free until withdrawals. It is the only retirement plan available to the self-employed, small business owners and workers between jobs.

http://www.newsday.com/news/politics/wire/sns-ap-scotus-bankruptcy,0,532941.story?coll=sns-ap-politics-headlines

[oneighty]

1. Privatized SS

accounts, medical savings accounts will also be fair game I bet.

180

[420inTN]

2. Well, let's see what the ruling is...

however, since privatized SS is still SS, I would expect it to be exempted like regular SS. However, my expectations aren't always met. ;-)

[NYC]

5. Things could go the other way.

First the "private SS" would not be exempted, and in time, even the regular SS would not be exempted.

After all, this is the Bush Era.

[420inTN]

9. That's why I said let's wait until the ruling.

The SCOTUS could exempt all IRA/401/SS/Priv SS holdings. Or some. Or none.

[Khephra]

3. kick

[VolcanoJen]

4. Kick!

K I C K

[saigon68]

6. Kick

This is class warfare---- A $10,000,000.00 Corporate exec's ERISA pension is exempt from seizure.

[Bono71]

8. In every instance, including personal bankruptcy?

[Supersedeas]

7. the Republican Congress is likely to radical alter bankruptcy laws anyways