Running v. Miller (In re Miller)

Summarized by Bruce Weiner , Rosenberg, Musso & Weiner
12 years 4 months ago

Citation:

No cite yet. Case No. 13-6026

Tag(s):

Ruling:

Eighth Circuit Bankruptcy Appellate Panel affirmed decision of the Bankruptcy Court which held that debtor's IRA account of $236,379.23 was exempt. Debtor used funds from a tax-qualified IRA account to purchase another IRA, but the amount of the purchase exceeded the yearly limit on IRA contributions. The BAP agreed with the Bankruptcy Court by holding that because the original account that the debtor rolled over qualified as tax exempt under §408 of the Internal Revenue Code, the debtor's current IRA was exempt under §523(b)(3)(C) of the Bankruptcy Code and the contribution limitations did not apply.

Procedural context:

Appeal from the United States Bankruptcy Court, District of Minnesota.

Facts:

Debtor owned a tax qualified IRA and used it to purchase another IRA. The current account had a value of $236,379.23. The Debtor claimed the account as exempt and the Trustee objected to the exemption. The Bankruptcy Court held that because the original IRA account qualified under §408 of the IRC, and would have been exempt in a bankruptcy case, the current account also qualified under the IRC and was therefore exempt. The Court overruled the Trustee's objection and she appealed.

Judge(s):

Federman, Saladino, and Schermer

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