Hoffman v. Signature Bank of Georgia, No. 20-12823 (11th Cir. 2022)Annotate this Case
The Eleventh Circuit reversed the district court's decision affirming the bankruptcy court's order granting the Bank's objection to plaintiff's claimed bankruptcy estate exemptions. The court concluded that Roth IRAs are excluded from Georgia debtors' bankruptcy estates pursuant to federal law. The court found that the development of the caselaw in this area and the subsequent amendments to the Georgia Code reflect the Georgia Assembly's intention to clarify that both traditional IRAs as defined in 26 U.S.C. 408 and Roth IRAs as defined in section 408A are exempt from garnishment, thus subjecting IRAs to a restriction on transfer by state statute, and making both types of IRAs eligible for exclusion under the Bankruptcy Code. Accordingly, the court remanded so that the district court may reverse the order of the bankruptcy court.