economy
Can creditors garnish money from an inherited IRA?
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TL;DR
- Inherited IRAs do not receive the same federal bankruptcy protection as retirement accounts owned by the original holder.
- Creditor protection for inherited IRAs varies significantly by state law outside of bankruptcy.
- Creditors usually need a court judgment to garnish funds from an inherited IRA.
- Distributions taken from an inherited IRA often lose any remaining creditor protections.
- Debt settlement, consolidation, and credit counseling are options to manage debt and potentially protect inherited IRA assets.