NC Court of Appeals Holds IRA Withdrawals Exempt from Creditors
The North Carolina Court of Appeals, in Kinlaw v. Johnson, confirmed statutory law protecting IRAs from creditors, and extended the protection to the account owner's legal use of IRA funds from collection on a creditor's judgment. The court stated:
"We therefore hold, liberally construing the statute in favor of Defendant, Elmwood, 295 N.C. at 185, 244 S.E.2d at 678; Laughinghouse, 44 B.R. at 791, that N.C. Gen.Stat. § 1C-1601(a)(9) exempts Defendant's IRAs and Defendant's legal use of funds contained within those IRAs, from Plaintiff's judgment. As the issue is not before us, we do not make any holding regarding any question concerning contributions Defendant may have made, or may in the future make, to his IRAs." (Emphasis added)
This was appealed to the NC Supremes who ruled in Fall 2010. Your citation is obsolete and not helpful for folks like me.
RESPONSE: Yes, the NC Supreme Court issued a decision on November 5, 2010, seven weeks after this post. It was not obsolete at the time it was posted.