LATEST 2012-2016 NATIONAL
-- HOT! HOT!
May 12th, 2016
Will Your Inherited IRA Be
Declared Dead Soon?
With multiple budget
proposals by the Obama administration that call for the
death of the Inherited IRA account as we know it, we are
operating on the risk of a big change.
However, no budget proposal of Obama has ever been
passed and implimented, so the odds of the curtailing
and eventual death of this fantastic product/procedure
have been greatly excerated and published by media
sources who tell you the risks which are real.
But may ignore the realtiy that America likes the idea
of stretching out deceased family member retirement
money over their own life expectancy (and sometimes,
even their children's) without that sudden tax blow
coming down from a congressional hammer.
So stay tuned...
June 26th, 2015
June Is A Hot Month For Big Supreme Court Rulings!
Back to back major rulings
affecting IRA accounts has taken place by the U.S.
Supreme Court rulings. On June 26th, 2015, the Supreme
Court voted 5-4 on the Obergefell v. Hodges case,
affectively declaring the law of the land to redefine
This re-definition of
marriage now includes all same sex married couples in
the definition, upending states rights to determine
their own definitions.
I don't know if this puts us
somewhere over the rainbow or the end of states rights
as we know them. And, I personally strongly disagree
with the ruling and find it a grave mistake for multiple
But, I must adhere to the
edicts that have come from this decision and yes, I am
personally aware of clients and friends, and future
clients who may now also be affected directly or
indirectly by this ruling.
So, the bottom line
is all of the IRS law and rules pertaining to married
couples and all the content on this site mentioning
married couples and surviving spouses is now inclusive
of the LGBT individuals and families newly affected by
June 12th, 2014
Supreme Court Removes Bankruptcy Protection For Inherited
in June, in the Clark v.
Rameker court case taken to the Supreme Court, it finally was
determined that inherited retirement funds DO NOT have the same
protection as regular IRA type accounts still owned by the
original account creators.
There are plenty of new questions this ruling brings in
bankruptcy law, estate planning, etc. One clear fact is
that it shows a surviving spouse would be SMART to put the
former spouse's IRA or 401-k plan into their own name now, so
the legal reach of this determination can not remove bankruptcy
protection for those inherited funds. Yet some even
question if a spouse can still do that and be exempt from
creditors thereafter. (I don't support that view)
Advisers Proceed With Caution Article
By putting the funds into an inherited IRA in cases where the
surviving spouse is under 59 1/2 and wants withdrawals without
the 10% penalty applying -- it is clear that it would remove
valuable creditor protection.
Also disclaimer activity could be deemed an illegal conveyance
in bankruptcy court according to popular CPA and IRA expert Bob
Keebler. So, be sure to get professional advisory on ANY
larger type IRA account BEFORE you make a move.
states had bankruptcy protection secured by
prior court rulings. Whether those former rulings have any
weight now, will have to be determined in future court cases.
And I will keep you updated as they happen. Noting:
Read more about the unanswered questions this ruling brings up
The Fastest Way To Lose an IRA
And to review the actual Supreme Court ruling:
Actual Supreme Court Case
The 2015 Federal Budget Reveals...
"Same 'ol Samo!"
Basically, a "redo" applies to all the failed retirement plan
changes put in the 2014 budget, which failed to be implemented.
(Six out of seven anyway) The one that concerns our firm
the most is the restating of giving non spouse beneficiaries just
five (5) years to remove the money and pay the taxes on it.
Since we work with $50,000 - to over 2 million dollar Inherited
IRA account beneficiaries, this could become a drastic tax
burden on the heirs, especially when there is only one child or
is the best word to describe the intent behind these
proposals... M.D. Anderson "Cruelty"
Here or the Picture Above
to Get Ed Slott's Opinion (CPA and IRA Expert)
December 2, 2013
Wisconsin Cheese Money Showdown
Actually, it has nothing to do with cheese. But, that
may be all a family in Wisconsin may have left if the
Supreme Court rules against them when the case comes up
for review as soon as January 2014.
A previous circuit court was split on whether inherited
IRA's are or are not IRA's after you die. (IRA's are
commonly known as bankruptcy asset survivors you get to
keep) It may be the end for inherited
accounts to be protected in America from creditor reach.
When does an IRA not become an IRA, just because it was
inherited by someone else? Does an inherited home
become a car? An inherited bank account become a
mutual fund account? It is still under the same
IRS TAX rules folks... My Tax Opinion?
I hope they determine these precious IRA dollars can be
kept. 300k is a lot of money to rebuild a
Full Story Link:
READ MORE ABOUT IT
July 12, 2013
The Inherited IRA Battle Has Begun...
From Forbes Personal Finance
Click Link Below To Read Article
(Note: It will take a lot of polish
to ever pass...)
April 13, 2013
couldn't leave it alone. Now, they have proposed in the
2014 budget to force your inherited IRA into a maximum 5
year forced payout. Yes, grandfathering is
included for those being set up on current
deaths that take place prior to it becoming law.
BUT FEW KNOW IT IS ONLY FOR YOUR LIFETIME! Even
if your account gets grandfathered --
Your heirs get the same 5 year treatment in this
And of course, there is more bad news...
they also feel they can determine just how much money
you should be allowed to accumulate in your retirement
account (of any kind mind you). If it is more than
approximately 2.5 million -- this new proposal may shut
down your account for any amounts over that figure!
More from Wall Street Journal Article Published today:
A New Year and a New 401(k)
Government Program - Let's Make a Deal!
No end is in site for a workable plan that fixes the
current increasing US debt problem. This risks
everything we hold dear and true and frankly, it risks
the things we enjoy, the liberties and freedoms we
Drastic changes may be coming very soon.
The new law has a deal for
you. You can now convert your 401(k) plan at work (Also 403b's,
thrift savings and 457(b) plans too) to a ROTH
IRA and you don't have to sever your employment or
retire. Yes, you can right now, convert some or all of
your employer sponsored and send the money C/O U.S.
Many financial writers have already published reasons to
take the "deal" on the Roth conversion.
It's not for everyone. Letting your
traditional IRA just become an eventually taxable inherited IRA at your
death makes a lot of sense. Investing in real
estate as a "hard asset" also makes a lot of sense.
Keep your cash in your pocket -- you never know when you
may need it for.
Missed Your RMD for Last Year?
Well, they have another deal
for you. You can get out of trouble as long as you tell
your custodian to transfer the money to your favorite
charity. You've only got until January 31st, 2013,
to count for 2012 tax year.
There is NO big new news other than
continued attempts by our elected national officials to revive
former proposals that go back to 2008. None of this
proposed law is really necessary and some is
confiscatory in nature to
say the least. We are watching closely expecting something to
"hit" most likely right after the election. Or if the government
gets desperate for operating capital - even before the election!
June 28, 2012
National Health Care
So, we think CPA Ed Slott's review of just who gets to help pay for it is in order:
And, we also thank
Robert S. Keebler, CPA, MST for his timely sending out of his
"Understanding the Health Care Surtax Chart. Get your
June 22, 2012
IRS Now Putting Focus On IRA
The news is out --
the IRS has to report to the Treasury Department by October 15th
of this year. Treasury wants to know ways to raise revenues by
going after penalties and interest not currently being paid by
The IRS has
discovered they have been losing billions from collection
activities by faulty systems, bad advisers, or just unaware IRA
owners of when and what you can put into an IRA as well as take
out of an IRA account.
Though this information covers
ALL IRA's, the fact is that
are the worst for mistakes waiting to happen. Screw ups are
as you will find on this information website.
warning this month is real.
Don't ignore the reason why major publications and news articles
have all clearly stated that if you have recently inherited an
IRA account as a designated beneficiary, hiring an
expert is mandatory!
Read more about it
from this excellent article from Wall Street Journal reporter,
June 22, 2012/Print edition June 23, 2012, page B7)
Congress is trying to stop the "stretch-out" on
FUTURE Inherited IRA's!
stretch IRA may die at least for non spouse heirs.
Unless they are disabled. (all kinds of
qualified retirement plans eventually become eligible and are
known as an inherited or beneficiary IRA at death if not cashed
In other words, most
people would be barred from any long term stretch out of income
and tax deferral beyond 5 years in this new proposal. Though it
has been verbally stated the provision will be removed from the
pending transportation bill by the congressman that put it in
there in the first place, it still remains as part of one
of two proposals! (house and senate versions)
Baucus states it won't become effective January 1st, 2013 for decedent deaths
after that date.
However, as our graphic shows -- the end may not be far away. The
cat is out of the bag. The juicy billions of extra taxation
proposal could generate will not be easily forgotten. IF HIS WORD IS GOOD!
Just as it is slipped
on top of the back of a bill that really has nothing to do with
estate or financial planning, it will come back again I am
afraid. And, that is why you want to spend a little time
consulting with our firm to make sure you know how to get your
inherited accounts set up properly before any proposal like this
actually does become effective.
For the many we have
already helped, the good news is great news. YOU WILL BE
GRANDFATHERED! (well in at least the provision proposed that
they are pulling back out -- or are supposed to pull back out.)
be. Read our site content and then set an appointment to chat by
phone, in person, or by SKYPE. This is extremely important,
especially for those thinking of cashing in inherited accounts
before you understand the value of establishing an inherited IRA
while you still can. (You would then have the rest of your life
to cash it in or take RMD (required minimum distributions) or any
other amount you desire, while
protecting the balance from instant taxation) DON'T!!!