Last week the U.S. Supreme Court delivered a rare unanimous verdict addressing the status of inherited individual retirement accounts, IRAs, in a bankruptcy situation. The ruling could impact the retirement planning decisions and strategies of employees who work for your clients.

The case, Clark v. Rameker, has its roots in a personal bankruptcy filing of a woman who had inherited an IRA from her mother worth about $450,000 in 2001. The daughter, Heidi Heffron-Clark, promptly began taking monthly distributions from the IRA. By 2010, its value had dropped to $300,000 — the same year she filed for personal bankruptcy.

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