In a recent court case, when petitioners filed for Chapter 7 bankruptcy, they sought to exclude roughly $300,000 in an inherited individual retirement account (IRA) from the bankruptcy estate using the "retirement funds" exemption. See 11 U. S. C. § 522(b)(3)(C). The Bankruptcy Court concluded that an inherited IRA does not share the same characteristics as a traditional IRA and disallowed the exemption. The District Court reversed, explaining that the exemption covers any account in which the funds were originally accumulated for retirement purposes. The Seventh Circuit disagreed and reversed the District Court.
Funds held in inherited IRA accounts are not "retirement funds" within the meaning of 11 11 U.S.C. §522(b)(3)(c) and therefore not exempt from the bankruptcy estate.
Join Debbie Crawford on September 9th to learn more about inherited IRAs and death distributions. In this program, she will take you from the death of the account holder to the beneficiary. She will look at detailed options for spouse and non-spouse beneficiaries. If you have struggled with these in the past, you may want to know how to set up the file, report it properly to the IRS and give clear instruction to the account holder on his or her options. Many errors occur during the transfer of the IRA to the beneficiary and can cause reporting liabilities, double taxation and 50% penalties to the account holders who inherit these accounts. This is a comprehensive approach to death distributions on an IRA that you won't want to miss.For more information or to register, click here.
September is National Cyber Security Awareness Month
The Internet is part of everyone's life, every day. We use the Internet at work, home, for enjoyment, and to connect with those close to us.
However, being constantly connected brings increased risk of theft, fraud, and abuse. No country, industry, community, or individual is immune to cyber risks. As a nation, we face constant cyber threats against our critical infrastructure and economy. As individuals, cybersecurity risks can threaten our finances, identity, and privacy. Since our way of life depends on critical infrastructure and the digital technology that operates it, cybersecurity is one of our country's most important national security priorities, and we each have a role to play-cybersecurity is a shared responsibility.
Bankers eCampus has a Security Series that is taught by Susan Wind. You can purchase one or all parts of the series. You will gain knowledge on how to keep you, your employees, account holders and financial institutions safe! For more information, click here.
FinCEN Issues Advisory to US Financial Institutions on Promoting a Culture of Compliance
BSA/AML shortcomings have triggered recent civil and criminal enforcement actions - FinCEN seeks to highlight the importance of a strong culture of BSA/AML compliance for senior management, leadership and owners of all financial institutions subject to FinCEN's regulations regardless of size or industry sector. To read this advisory in its entirety, click here.
Bankers eCampus has a complete BSA Series. Taught by Debbie Crawford, the thirteen part BSA Officer Training Series can be used as a guide to get the most complete training and education experience on important BSA topics. For more information or to purchase any part of the series, click here.
Virtual Currencies Pose Risk
The Consumer Financial Protection Bureau (CFPB) issued a consumer advisory warning consumers about the risks of virtual currencies such as Bitcoin. The CFPB advises consumers to be aware of potential issues with virtual currencies such as unclear costs, volatile exchange rates, the threat of hacking and scams, and that companies may not offer help or refunds for lost or stolen funds. The CFPB also announced that consumers who encounter a problem with a virtual currency product or service can now submit a complaint with the Bureau. For more information or to read the advisory, click here.