October Term 2004 · Docket 03-1407
Does a debtor keep tax-free IRA funds in bankruptcy?
the sides that brought the case seek to exempt IRA funds from bankruptcy. the opposing sides argue the funds are not exempt.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Ms. Karlan argued statutory interpretation is a holistic process.
Ms. McKiever argued two requirements must be met for exemption.
Justice Scalia questioned if tax benefits trigger age-based restrictions.
Justice Ginsburg noted the funds were shielded while in the plan.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 26, lines 13-31 — Transcript, file page 26, lines 13-31
- Official Supreme Court Transcript — file page 3, lines 15-31 — Transcript, file page 3, lines 15-31
- Official Supreme Court Transcript — file page 3, lines 33-35 — Transcript, file page 3, lines 33-35
- Official Supreme Court Transcript — file page 3, lines 41-43 — Transcript, file page 3, lines 41-43
- Official Supreme Court Transcript — file page 3, lines 5-13 — Transcript, file page 3, lines 5-13
- Official Supreme Court Transcript — file page 4, lines 11-13 — Transcript, file page 4, lines 11-13
- Official Supreme Court Transcript — file page 4, lines 17-17 — Transcript, file page 4, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 29-33 — Transcript, file page 4, lines 29-33
- Official Supreme Court Transcript — file page 5, lines 1-3 — Transcript, file page 5, lines 1-3
- Official Supreme Court Transcript — file page 5, lines 13-23 — Transcript, file page 5, lines 13-23
- Official Supreme Court Transcript — file page 5, lines 33-37 — Transcript, file page 5, lines 33-37
- Official Supreme Court Transcript — file page 5, lines 41-45 — Transcript, file page 5, lines 41-45
- Official Supreme Court Transcript — file page 6, lines 15-29 — Transcript, file page 6, lines 15-29
- Official Supreme Court Transcript — file page 6, lines 37-45 — Transcript, file page 6, lines 37-45
- Official Supreme Court Transcript — file page 7, lines 15-31 — Transcript, file page 7, lines 15-31
A citizen's guide to the whole case
What this case is about
The case tests whether a debtor can shield IRA funds from bankruptcy creditors. the sides that brought the case want to keep the funds. the opposing sides want the funds available to creditors.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-31 — Transcript, file page 26, lines 13-31
- Official Supreme Court Transcript — file page 3, lines 15-31 — Transcript, file page 3, lines 15-31
How the case got here
The Supreme Court heard oral argument in this case on December 1, 2004.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 5-13 — Transcript, file page 3, lines 5-13
What each side wants
the sides that brought the case want to keep IRA funds exempt from bankruptcy.
the opposing sides want the IRA funds available to creditors.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-31 — Transcript, file page 26, lines 13-31
- Official Supreme Court Transcript — file page 3, lines 15-31 — Transcript, file page 3, lines 15-31
What each side says
the sides that brought the case argue statutory interpretation requires a holistic reading.
the opposing sides argue the funds lack full enjoyment due to tax rules.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-31 — Transcript, file page 26, lines 13-31
- Official Supreme Court Transcript — file page 3, lines 15-31 — Transcript, file page 3, lines 15-31
What the justices asked
Justice Stevens asked what the word holistic means.
Justice O'Connor asked if the issue was based on age.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 33-35 — Transcript, file page 3, lines 33-35
- Official Supreme Court Transcript — file page 3, lines 41-43 — Transcript, file page 3, lines 41-43
- Official Supreme Court Transcript — file page 4, lines 11-13 — Transcript, file page 4, lines 11-13
- Official Supreme Court Transcript — file page 4, lines 17-17 — Transcript, file page 4, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 29-33 — Transcript, file page 4, lines 29-33
- Official Supreme Court Transcript — file page 5, lines 1-3 — Transcript, file page 5, lines 1-3
- Official Supreme Court Transcript — file page 5, lines 13-23 — Transcript, file page 5, lines 13-23
- Official Supreme Court Transcript — file page 5, lines 33-37 — Transcript, file page 5, lines 33-37
- Official Supreme Court Transcript — file page 5, lines 41-45 — Transcript, file page 5, lines 41-45
- Official Supreme Court Transcript — file page 6, lines 15-29 — Transcript, file page 6, lines 15-29
- Official Supreme Court Transcript — file page 6, lines 37-45 — Transcript, file page 6, lines 37-45
- Official Supreme Court Transcript — file page 7, lines 15-31 — Transcript, file page 7, lines 15-31
Why it matters
This case defines the scope of bankruptcy exemptions for retirement funds. It determines whether debtors retain tax-advantaged assets during financial distress. Creditors rely on these funds to satisfy debts. The outcome shapes national bankruptcy policy.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-31 — Transcript, file page 26, lines 13-31
- Official Supreme Court Transcript — file page 3, lines 15-31 — Transcript, file page 3, lines 15-31
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 33-35 — Transcript, file page 3, lines 33-35
- Official Supreme Court Transcript — file page 3, lines 41-43 — Transcript, file page 3, lines 41-43
- Official Supreme Court Transcript — file page 3, lines 5-13 — Transcript, file page 3, lines 5-13
- Official Supreme Court Transcript — file page 4, lines 11-13 — Transcript, file page 4, lines 11-13
- Official Supreme Court Transcript — file page 4, lines 17-17 — Transcript, file page 4, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 29-33 — Transcript, file page 4, lines 29-33
- Official Supreme Court Transcript — file page 5, lines 1-3 — Transcript, file page 5, lines 1-3
- Official Supreme Court Transcript — file page 5, lines 13-23 — Transcript, file page 5, lines 13-23
- Official Supreme Court Transcript — file page 5, lines 33-37 — Transcript, file page 5, lines 33-37
- Official Supreme Court Transcript — file page 5, lines 41-45 — Transcript, file page 5, lines 41-45
- Official Supreme Court Transcript — file page 6, lines 15-29 — Transcript, file page 6, lines 15-29
- Official Supreme Court Transcript — file page 6, lines 37-45 — Transcript, file page 6, lines 37-45
- Official Supreme Court Transcript — file page 7, lines 15-31 — Transcript, file page 7, lines 15-31
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 26, lines 13-31 — Transcript, file page 26, lines 13-31
- Official Supreme Court Transcript — file page 3, lines 15-31 — Transcript, file page 3, lines 15-31
- Official Supreme Court Transcript — file page 26, lines 13-31 — Transcript, file page 26, lines 13-31
- Official Supreme Court Transcript — file page 3, lines 15-31 — Transcript, file page 3, lines 15-31
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.