Bobby’s Article on IRA Beneficiary Designation Options Published in the Journal of Financial Service Professionals

Bobby Feisee co-authored an article which was published in the January 2015 edition of the Journal of Financial Service Professionals (Vol. 69, Issue 1, pp. 57-62). The article explores how IRA beneficiary designations have been altered in the aftermath of the U.S. Supreme Court's decision in Clark v. Rameker. In a unanimous 9-0 decision, the SCOTUS decided that inherited IRAs are not “retirement funds” within the meaning of federal bankruptcy law. This means they are available to satisfy creditors’ claims. Bobby recommends financial advisers help their clients with re-examining any outright beneficiary designations for their retirement accounts. The goal is to insure the funds in your IRA will remain protected for your beneficiaries. Check out the article here: Counseling Clients on Their IRA Beneficiary Designation Options: The Impact of the Recent U.S. Supreme Court Case, Clark v. Rameker...

31 July

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Landmark Supreme Court Decision Exposes Inherited IRAs To Creditors In Bankruptcy

Posted by Bobby Feisee

in Current Events

The U.S. Supreme Court held in Clark v. Rameker that inherited IRAs are not “retirement funds” within the meaning of 11 U.S.C. §522(b)(3)(c), a federal bankruptcy law. This means inherited IRAs are available to satisfy creditors’ claims. How the SCOTUS Reached Its Decision The Court relied upon three factors to differentiate an inherited IRA from a participant-owned IRA. The three factors include: (1) the beneficiary of an inherited IRA cannot make additional contributions to the account, while an IRA owner can, (2) the beneficiary of an inherited IRA must take required minimum distributions from the account regardless of how far away the beneficiary is from actually retiring, while an IRA owner can defer distributions at least until age 70 ½, and (3) the inherited IRA beneficiary can withdraw all funds in the IRA at any time and for any purpose without a penalty, while an IRA owner must generally...

22 May

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Estate Planning Tip: Utilizing a Roth IRA to Stretch Out Tax Benefits

Posted by Bobby Feisee

in Bobby's Blog

A Roth IRA offers distinctive retirement-savings benefits since under current law, investments in this type of account can grow tax-deferred and withdrawals are tax-free. It also gives you the ability to avoid early distribution penalties on some withdrawals. If you have a significant balance in your IRA and don’t plan to tap that balance during your lifetime, you may want to consider converting your IRA to a Roth IRA since it can benefit your estate. How? Well, the contributions made to a Roth IRA have the potential to grow larger than it otherwise might under traditional distribution rules, which means you’re leaving more for your loved ones. Another major benefit is that your beneficiaries can make income-tax-free withdrawals during their lifetimes. There are some benefits to this IRA strategy, but it is not fail safe. A potential drawback to a Roth IRA is that the ability to contribute to this type...