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Supreme Court removes Federal protection from IRA's in certain cases

By WKTV News

(WKTV) - For many people, individual retirement accounts, or IRA's are the most valuable asset they have.
     
They're protected by the federal government but theres a catch.
 
The Supreme Court recently ruled that inherited IRA's aren't protected.
     
Part of the reason is because the person inheriting the account could be under the age of 59, which is the age you have to be in order to tap into your IRA.
     
When someone inherits an IRA when the original owner dies, it's no longer considered a retirement account, meaning it doesn't get the same federal protection.
     
"If they have an IRA they're safe, but when they pass they really have to be careful about who they leave their IRA to," said Dave Zumpano, a local estate planner. "Here's their choices: Your spouse, your kids, or loved ones, or three to a trust, not any trust there are 4 criteria, but the most secure is a trust."
 

This ruling hasn't affected the original owners of IRA's. they still have the same federal protection. 

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