Has the Individual Retirement Account Lost its Luster? Recent Scrutiny of Rollovers and Non-Spousal Inheritance Rights May Dull the Ira for Retirement and Estate Planning

Mertens - Law of Federal Income Taxation - Development & Highlights, June 2014

13 Pages Posted: 27 Jan 2016

See all articles by Theron West

Theron West

Thomas Jefferson School of Law

William Byrnes

Texas A&M University School of Law

Robert S. Bloink

HBC Ferguson, PLLC - Attorneys at Law; Thomas Jefferson School of Law

Date Written: June 2014

Abstract

While the legal landscape is constantly evolving, some areas of the law seem to be more fluid than others. Taxation is one area of the law that seems to be in a perpetual state of flux -- and the 2013 tax year was no exception. Many of the recent changes in the tax landscape involve the treatment of the Individual Retirement Accounts (IRAs) -- perhaps in large part due to the ever-growing popularity of these planning vehicles.

As of 2012, 40 percent of American used IRAs as part of their retirement income planning strategies. According to data reported the third quarter in 2013, a quarter, or $6.2 trillion, of retirement assets were held in IRAs. In other words, IRAs have taken center stage in the retirement income-planning arena, so it comes as no surprise that their tax treatment has received significant attention in recent months. All eyes are now focused on recent developments that may impact how this critical tax-deferred retirement vehicle is used in the future. To this end, this Highlight will explore: (1) the creation of the IRA; (2) major developments in the laws that impact IRAs; (3) a recent Tax Court decision's modifications to the rules governing IRA-to-IRA rollover; and (4) the pending Supreme Court decision regarding the asset protection rules applicable to non-spousal inherited IRAs.

JEL Classification: H24, K34

Suggested Citation

West, Theron and Byrnes, IV, William H. and Bloink, Robert S., Has the Individual Retirement Account Lost its Luster? Recent Scrutiny of Rollovers and Non-Spousal Inheritance Rights May Dull the Ira for Retirement and Estate Planning (June 2014). Mertens - Law of Federal Income Taxation - Development & Highlights, June 2014. Available at SSRN: https://ssrn.com/abstract=2720647

Theron West

Thomas Jefferson School of Law ( email )

701 B Street
Suite 110
San Diego, CA 92101
United States

William H. Byrnes, IV (Contact Author)

Texas A&M University School of Law ( email )

1515 Commerce St.
Fort Worth, TX Texas 76102
United States
(817) 212-3969 (Phone)

HOME PAGE: http://www.linkedin.com/in/williambyrnes/

Robert S. Bloink

HBC Ferguson, PLLC - Attorneys at Law ( email )

261 E. Maple
Suite 180
Birmingham, MI 48009
United States
(313)417-0423 (Phone)

Thomas Jefferson School of Law ( email )

701 B Street
Suite 110
San Diego, CA 92101
United States

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