Inherited IRA

Is an inherited IRA protected from creditors and judgments? Thanks.



It should get the same protection as owned IRAs because all IRAs are included under Sec 408 or 408A of the tax code. That protection will vary by state and circumstances. I do not know if an inherited rollover IRA covered without limit under bankruptcy for the owner will also have unlimited protection, or the change of beneficial interest will result in the IRA being included among other IRAs of the beneficiary subject to the 1,000,000 limit.

Of course, all IRAs are still subject to marital settlements or IRS liens.



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