Bob Lawless blogged on Credit Slips about Non-exempt Exempt IRAs earlier this week. Highlights include:
- Some chapter 7 trustees have found a problem that could affect thousands of IRAs.
- The Bankruptcy Code clearly exempts IRAs but only does so if the IRA qualifies for a tax-favored treatment.
- Some chapter 7 trustees have challenged IRAs on the theory that the possibility of a lien could arise means an IRA is not tax favored.
- Its is the technicality of all technicalities to say an IRA is not exempt because of the possibility that a lien could arise.