Supreme Court of the United States

Rousey v. Jacoway

April 4, 2005544 U.S. 320

Summary

Justice Thomas delivered the unanimous opinion holding that the Rouseys’ IRAs qualify for exemption under 11 U. S. C. § 522(d)(10)(E), subject to the statute’s requirement that the exempted amounts be reasonably necessary for support. The accounts provide a right to payment on account of age because the substantial early-withdrawal penalty restricts access until age 59½. They also constitute plans similar to those enumerated in the statute because they provide income substituting for wages rather than functioning as ordinary savings accounts. The Court reversed the Eighth Circuit’s judgment and remanded. There were no separate opinions.

Holding

  • Whether the right to payment from the Rouseys’ IRAs is on account of age.. The IRAs confer a right to payment on account of age because the substantial 10-percent early-withdrawal penalty restricts access to the account balance until age 59½.
  • Whether the Rouseys’ IRAs are similar plans or contracts under § 522(d)(10)(E).. The IRAs are similar plans or contracts because, like the enumerated plans, they provide income that substitutes for wages; they therefore satisfy both disputed requirements for exemption.

Docket 03-1407

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