U.S. Supreme Court Will Address Circuit Split On Inherited IRAs in Bankruptcies

The U.S. Supreme Court granted certiorari in a case this week on how inherited individual retirement accounts should be treated in bankruptcies, Reuters reports. The Seventh Circuit ruled that creditors could access an IRA inherited by the owners of a failed pizza shop because the IRA ceased to be retirement funds when inherited. However, the Fifth and Eighth Circuits have held that IRAs don't cease to be retirement funds when they are transferred, Reuters also reports.