Individual retirement accounts include traditional IRAs, Roth IRAs, SIMPLE IRAs and SEP IRAs. Traditional and Roth IRAs are funded by the individual owner. SEP IRAs are funded by employers. SIMPLE IRAs are generally funded by employers and employees. Special tax rules apply to these accounts.
This case confirms that the early distribution penalty exception for first time home buyers does not apply to retirement accounts unless they are IRAs, i.e.
Definition An Annual Addition is the total amount credited to a participant’s account for any limitation year. This includes: Employer contributions; Employee contributions; and Forfeitures.
A debtor’s right to receive payment from an IRA may be exempt from the bankruptcy estate under 11 U.S.C. § 522(d)(10)(E), even though the debtor has