October Term 2013 · Docket 13-299
Does an inherited IRA qualify as a retirement fund for bankruptcy protection?
The dispute centers on whether inherited IRA funds meet the legal definition of retirement funds under the Bankruptcy Code.
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. Spinelli asserted that parties agree retirement funds are set aside for when an individual stops working.
Ms. Spinelli stated that funds in an inherited IRA do not meet that specific definition.
Mr. Shanmugam argued that the Bankruptcy Code's plain terms exempt funds in tax-exempt retirement accounts.
Justice Kagan noted that inherited funds cannot be added to and must be depleted over time.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 29-33 — Transcript, file page 10, lines 29-33
- Official Supreme Court Transcript — file page 10, lines 37-5 — Transcript, file page 10, lines 37-5
- Official Supreme Court Transcript — file page 11, lines 23-29 — Transcript, file page 11, lines 23-29
- Official Supreme Court Transcript — file page 12, lines 37-39 — Transcript, file page 12, lines 37-39
- Official Supreme Court Transcript — file page 24, lines 25-47 — Transcript, file page 24, lines 25-47
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 3, lines 51-13 — Transcript, file page 3, lines 51-13
- Official Supreme Court Transcript — file page 3, lines 7-15 — Transcript, file page 3, lines 7-15
- Official Supreme Court Transcript — file page 5, lines 19-45 — Transcript, file page 5, lines 19-45
- Official Supreme Court Transcript — file page 6, lines 45-49 — Transcript, file page 6, lines 45-49
- Official Supreme Court Transcript — file page 7, lines 7-11 — Transcript, file page 7, lines 7-11
- Official Supreme Court Transcript — file page 8, lines 15-19 — Transcript, file page 8, lines 15-19
- Official Supreme Court Transcript — file page 8, lines 23-25 — Transcript, file page 8, lines 23-25
- Official Supreme Court Transcript — file page 8, lines 47-11 — Transcript, file page 8, lines 47-11
- Official Supreme Court Transcript — file page 9, lines 37-13 — Transcript, file page 9, lines 37-13
A citizen's guide to the whole case
What this case is about
This case tests the scope of the Bankruptcy Code's retirement funds exemption. The core issue is whether inherited IRA assets fit the statutory definition of funds set aside for retirement.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 25-47 — Transcript, file page 24, lines 25-47
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
How the case got here
The Supreme Court heard oral argument in this case on March 24, 2014.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-15 — Transcript, file page 3, lines 7-15
What each side wants
the sides that brought the case want the Court to rule that inherited IRAs are not retirement funds and thus lack bankruptcy protection.
the opposing sides want the Court to rule that inherited IRAs are retirement funds and retain bankruptcy protection.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 25-47 — Transcript, file page 24, lines 25-47
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
What each side says
the sides that brought the case argue that inherited IRAs do not meet the definition of funds set aside for an individual's retirement.
the opposing sides argue that the Bankruptcy Code's plain terms categorically exempt funds in tax-exempt retirement accounts.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 25-47 — Transcript, file page 24, lines 25-47
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
What the justices asked
Justice Sotomayor asked how a retirement fund differs from an inherited one.
Justice Sotomayor asked about the 10 percent penalty for early Roth IRA withdrawals.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 29-33 — Transcript, file page 10, lines 29-33
- Official Supreme Court Transcript — file page 10, lines 37-5 — Transcript, file page 10, lines 37-5
- Official Supreme Court Transcript — file page 11, lines 23-29 — Transcript, file page 11, lines 23-29
- Official Supreme Court Transcript — file page 12, lines 37-39 — Transcript, file page 12, lines 37-39
- Official Supreme Court Transcript — file page 3, lines 51-13 — Transcript, file page 3, lines 51-13
- Official Supreme Court Transcript — file page 5, lines 19-45 — Transcript, file page 5, lines 19-45
- Official Supreme Court Transcript — file page 6, lines 45-49 — Transcript, file page 6, lines 45-49
- Official Supreme Court Transcript — file page 7, lines 7-11 — Transcript, file page 7, lines 7-11
- Official Supreme Court Transcript — file page 8, lines 15-19 — Transcript, file page 8, lines 15-19
- Official Supreme Court Transcript — file page 8, lines 23-25 — Transcript, file page 8, lines 23-25
- Official Supreme Court Transcript — file page 8, lines 47-11 — Transcript, file page 8, lines 47-11
- Official Supreme Court Transcript — file page 9, lines 37-13 — Transcript, file page 9, lines 37-13
Why it matters
The outcome determines whether inherited retirement assets remain protected from creditors in bankruptcy. This affects the financial security of beneficiaries who inherit retirement funds.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 25-47 — Transcript, file page 24, lines 25-47
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
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 10, lines 29-33 — Transcript, file page 10, lines 29-33
- Official Supreme Court Transcript — file page 10, lines 37-5 — Transcript, file page 10, lines 37-5
- Official Supreme Court Transcript — file page 11, lines 23-29 — Transcript, file page 11, lines 23-29
- Official Supreme Court Transcript — file page 12, lines 37-39 — Transcript, file page 12, lines 37-39
- Official Supreme Court Transcript — file page 3, lines 51-13 — Transcript, file page 3, lines 51-13
- Official Supreme Court Transcript — file page 3, lines 7-15 — Transcript, file page 3, lines 7-15
- Official Supreme Court Transcript — file page 5, lines 19-45 — Transcript, file page 5, lines 19-45
- Official Supreme Court Transcript — file page 6, lines 45-49 — Transcript, file page 6, lines 45-49
- Official Supreme Court Transcript — file page 7, lines 7-11 — Transcript, file page 7, lines 7-11
- Official Supreme Court Transcript — file page 8, lines 15-19 — Transcript, file page 8, lines 15-19
- Official Supreme Court Transcript — file page 8, lines 23-25 — Transcript, file page 8, lines 23-25
- Official Supreme Court Transcript — file page 8, lines 47-11 — Transcript, file page 8, lines 47-11
- Official Supreme Court Transcript — file page 9, lines 37-13 — Transcript, file page 9, lines 37-13
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 24, lines 25-47 — Transcript, file page 24, lines 25-47
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
- Official Supreme Court Transcript — file page 24, lines 25-47 — Transcript, file page 24, lines 25-47
- Official Supreme Court Transcript — file page 3, lines 17-49 — Transcript, file page 3, lines 17-49
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.