Annual Payments Not Needed For IRA Tax Benefit: 8th Circ.

Law360, New York (November 4, 2013, 7:40 PM EST) -- The Eighth Circuit ruled Monday that a Minnesota retiree's rolled-over individual retirement annuity is exempt from bankruptcy creditors, saying individuals do not need to make annual contributions toward their retirement annuities to maintain IRA tax benefits.

The decision shoots down a bankruptcy trustee's argument that annual premiums are prerequisites of qualified IRAs under Section 408(b) of the Internal Revenue Code. The Eighth Circuit said annual contributions are discretionary and, if they are required, the statute is in place to cap the amount of money individuals can...
To view the full article, register now.