Washington
A Supreme Court decision that Individual Retirement Accounts are exempt from seizure by creditors in bankruptcy is being applauded by the life insurance industry, which consistently has supported such a policy.
The courts unanimous decision was written by Justice Clarence Thomas.
Jack Dolan, a spokesman for the American Council of Life Insurers, which lobbied intensely for that policy to be clarified in the bankruptcy reform legislation recently considered by the House, said insurers applaud the decision.
"This is a good decision, highlighting the importance of saving for retirement and a recognition of the special tax status Congress has accorded retirement savings," Dolan said. "It also reflects Congresss direction on the bankruptcy bill."
Dolan said the decision is especially important for people saving for the future who dont have an employer-based plan.
"There has been some concern whether IRAs would receive the same protections as an employer-sponsored plan in a bankruptcy case," Dolan said. "With the Supreme Courts ruling, it is clear that savings in IRAs, as well as employer-sponsored plans, are protected."
