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Bankruptcy status

In the case of ''Rousey v. Jacoway'', the United States Supreme Court ruled unanimously on April 4, [[2005]] that under section 522(d)(10)(E) of the United States Bankruptcy Code (), a debtor in bankruptcy can exempt his or her IRA from the bankruptcy estate. The Court indicated that because rights to withdrawals are based on age, IRAs should receive the same protection as other retirement plans. Thirty-four states already had laws effectively allowing an individual to exempt an IRA in bankruptcy, but the Supreme Court decision allows federal protection for IRAs. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 gave further protection to IRAs. Up to $1,000,000 of IRA assets can be exempt from a bankruptcy estate; this now includes both Traditional and Roth IRAs. The 2005 Act also increased the FDIC insurance limit for IRA deposits at banks.