Sunday, August 10, 2014

Inherited IRAs Are Not Exempt in Bankruptcy

The Supreme Court has unanimously ruled that IRAs inherited by non-spouses do not qualify for a federal bankruptcy exemption; that is, they are not protected from creditors in bankruptcy.  Clark v. Rameker[JS1] , No. 13-299 (June 12, 2014).

Background:  The Clark case centered on the question of whether a husband and wife filing for Chapter 7 bankruptcy could exempt from their bankruptcy estate an IRA account that the wife had inherited from her mother.  At the time the bankruptcy petition was filed, the value of the inherited IRA was approximately $300,000.  In seeking to exempt the inherited IRA funds, the couple relied on Bankruptcy Code §522(b)(3)(C) (11 USC 522(b)(3)(C)), which permits a debtor to exempt amounts that are both (a) “retirement funds,” and (2) exempt from income tax under one of several enumerated Internal Revenue Code provisions, including Code Sec. 408, which provides a tax exemption for IRAs.  
            The bankruptcy trustee and the unsecured creditors of the taxpayers objected to the claimed exemption on the ground that the funds in the inherited IRA were not “retirement funds” within the meaning of the Bankruptcy Code.  The bankruptcy court agreed and disallowed the exemption.  The District Court then reversed, explaining that the Bankruptcy Code exemption covers any account containing funds that were originally accumulated for retirement purposes.  Upon further appeal, the Seventh Circuit reversed the District Court’s ruling concluding that the inherited IRA funds could not be exempt because “inherited IRAs represent an opportunity for current consumption, not a fund of retirement savings.”
            The Seventh Circuit’s conclusion was directly opposite that reached by the Fifth Circuit when faced with the same question just one year earlier (In re Chilton). To resolve the conflict between these two Circuit Court rulings, the Supreme Court agreed to hear the case.

Wednesday, September 25, 2013

US Senate Special Committee on Aging Testimony

Read Paula Calimafde's Testimony to the US Senate Special Committee on Aging on 9/25/2013

Brief Excerpt:

"Longer life expectancies are requiring increased retirement savings. Individuals
of all economic levels are far more likely to properly save for their retirement if they
participate in some form of retirement plan. According to research by the American
Society of Pension Professionals and Actuaries (ASPPA), workers are 14 times more
likely to save in a retirement plan offered by their employer than to save through an IRA.

By using payroll deductions, these plans encourage savings because they
automatically remove the money before it ever goes into the employee’s pocket.
The retirement security of our nation’s employees is intended to rest primarily
upon three sources – often referred to as the three legged stool – Social Security, the
voluntary private retirement system and individual savings. As we know, Social Security
is basically a defined benefit system and payments are based upon an annuity type of
framework – i.e., one cannot outlive payments from Social Security. The voluntary
private retirement system is now primarily based on a defined contribution system and
the methods of payments can include annuity, instalments (most often through an IRA),
lump sum or a combination of one or more of these methods."  READ MORE

Tuesday, August 27, 2013

New Health Care Webinar

What Employers Need To Know Now

Reserve your Webinar seat now at:
SBCA's second Webinar on health care will focus on how organizations should strategically think through health care reform now, as well as discussing some of the major compliance issues (including the delay of the “Play or Pay (or not)” provisions until 2015).  Many small business owners now think that they don’t need to do anything for another year, but nothing is further from the truth.

Our panelists:

Gary B. Kushner, SPHR, CBP is the President and CEO of Kushner & Company, Portage, Michigan, an HR strategy and employee benefits consulting and administration firm.  He is a recognized expert in the field and is one of the nation’s most sought after speakers on HR strategy and employee benefits.  He has advised three U.S. Presidents on health care.  Gary is the SBCA VP in charge of Employee Benefits and also a member of the board of directors.

Al Martin, Esq., a partner at Lathrop & Gage LLP, Overland Park, Kansas, is a recognized national authority in the fields of business law, taxation, healthcare, and employee benefits.  He has carefully followed the 2010 federal health care reform, and has counseled employers on its impact and various techniques to deal with it.  He is the author of a book on this subject called “Healthcare Reform Facts,” and is also the author of an internet blog on the subject.  Al is the President of the SBCA and also serves as a director.

Our moderator:

Paula Calimafde, Esq. is a partner at Paley Rothman, Bethesda, Maryland and chairs the firm's Government Relations, Employee Benefits and Retirement Plan practice groups.  She can often be found on the Hill representing privately held businesses in the tax, employee benefits and health care areas and has frequently testified on the Hill on behalf of the SBCA.  She is also an authority on sophisticated estate planning.  Paula is the Chair and a director of the SBCA.

This seminar is free to SBCA and Group members and $35 for non-members. Checks should be made out to SBCA and sent to Charlie Johnson, Robinson, Grimes & Company, P.C., P.O. Box 4299, Columbus, GA 31914 in order to save your seat. 
SBCA Webinar on Health Care - What Employers Need To Know Now
Monday, September 9, 2013
1:00 PM - 2:30 PM EDT
After registering you will receive a confirmation email containing information about joining the Webinar.
System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server
Mac®-based attendees
Required: Mac OS® X 10.6 or newer
Mobile attendees
Required: iPhone®, iPad®, Android™ phone or Android tablet

Thursday, June 13, 2013

2013 SBCA Awards Reception in Pictures

Senator Mary Landrieu receives SBCA Award
Jere Glover, former Chief Counsel of SBA Office of Advocacy, and Paula Calimafde, Chair of the SBCA, presenting the 2013 SBCA Congressional Award to Senator Mary Landrieu 

Dave Camp
Brad Knox & Congressman Dave Camp
Brad Knox Presents Chairman Dave Camp with SBCA Award
Brad Knox, SBCA Director, presenting the 2013 SBCA Congressional Award to Chairman Dave Camp
Paula Calimafde, Al Martin, Matt Kadish, Gary Kushner, Bruce Temkin
Al Martin, SBCA President, receiving the SBCA Special Achievement Award from Matt Kadish, SBCA CEO, Gary Kushner, SBCA VP and Bruce Temkin, SBCA Director

Wednesday, May 15, 2013

Monday, April 8, 2013

Small Business Council of America's Public Affairs Day Events - 5/8/13

SBCA Public Affairs Day
Wednesday, May 8, 2013
Washington, D.C.
EVENT:                      Public Affairs Day             Willard InterContinental Washington
                                    10:00 a.m. – 3:30 p.m.      Meeting of Board and Members
                                                                             The Crystal Room
1:00 p.m.                     Buffet Luncheon/The Crystal Room
LOCATION:              Willard InterContinental Washington
1401 Pennsylvania Avenue, N.W.
Washington, D.C. 20004
EVENT:                      Meetings on Capitol Hill
                                    4:00 p.m. – 5:30 p.m.
LOCATION:              Actual Times and Locations to be Determined
EVENT:                      30th Congressional Awards Reception
5:30 p.m. - 8:00 p.m.  NOTE CHANGE IN TIME
LOCATION:              U.S. Capitol Visitor Center, Room CVC 212-10
                                    1st and E. Capitol Streets, N.E.
Washington, D.C.
We look forward to seeing you at both the meeting and reception.  Your input is valuable in helping us plan legislative strategies in the upcoming year, and your participation is vital to the success of the organization.
Complete and return the enclosed registration form today


Registration Form
SBCA May 8, 2013 Public Affairs Day Events
         I/we plan to attend all the SBCA Public Affairs Day Events
10:00 a.m. to 3:30 p.m.Meeting and Luncheon
Buffet Lunch Served at 12:30 p.m.
Willard InterContinental Washington
Washington, D.C.
4:00 p.m. to 5:30 p.m. Meetings on Capitol Hill
(actual times and locations to be determined)
                  I/we plan to attend only the Congressional Awards Reception
5:30 p.m. to 8:00 p.m.- Awards Reception  NOTE CHANGE IN TIME
Hors d'oeuvres and Cocktails Served
U.S. Capitol Visitor Center, Rm CVC 212-10
Washington, D.C.
Cost - $295.00 per person*                                                               $                     
            Please make check payable to: "SBCA”.
Those Attending:
Contact Email:                                                                                                                                 
(no later than April 26, 2013)
Small Business Council of America
clo Mrs. Leanne H. Redstone
1523 Concord Pike, Suite 300
Wilmington, DE 19803
(302) 691-SBCA; (302) 691-6833 Fax
*Note:  Due to federal requirements, we are unable to allocate a separate fee for events at the Capitol.  The registration fee covers the day's events.

Thursday, December 13, 2012

Optimizing Social Security Retirement Benefits - How Many Thousands of Dollars Will You Leave on the Table?

What if you discovered that what you don’t know about Social Security could result in your walking away from potentially thousands of dollars of additional income?  It happens to others, literally every day.

Multiple options, many of which are not common knowledge, are often available, especially for married couples.  Special options may come into play if you were previously widowed or divorced.  However, if you don’t know about these options you cannot consider them: making informed decisions could help you and your spouse avoid losing thousands of dollars of income to which you might otherwise be entitled.

Peter Weinbaum has agreed to discuss how to optimize your Social Security retirement benefits from 12:30 - 2:00 on Saturday, January 26, 2013, prior to the SBCA Annual Meeting at the Grand Floridian Resort and Spa, in Orlando, Florida.   Peter, long time SBCA Board Member and recognized expert on maximizing Social Security benefits, will open your eyes to the risks and opportunities surrounding Social Security claiming decisions.  


When Peter Weinbaum presented his recent Social Security webinar for the SBCA on September 20 we had more than 50  lines open.  The comments we received were replete with words like “terrific,” “excellent,” “great,” and “very informative.”  Some who attended the webinar ended up retaining Peter to do analyses of their own Social Security retirement benefits.


A month later – during the same week that Hurricane Sandy hit Philadelphia – Peter received rave reviews for his presentation of similar material to 40+ insurance agent clients on the evening of November 1 and to 95 attorneys and CPAs the next morning.  (Actually 150 attorneys and CPAs had signed up prior to the storm, but a third of them had to cancel.) 


Now Peter has agreed to present his seminar from 12:30 - 2:00 on Saturday, January 26, 2013, prior to the SBCA Annual Meeting.  This will be an updated version of the presentation with some new case stories.  The material is compelling, and you are almost guaranteed to learn something new even if you heard the SBCA webinar.  We anticipate that there will be more opportunity for interchange than there was in the webinar format.


If you are interested in attending this session, please let Leanne Redstone or me know as soon as possible so that we'll be able to book the correct size room.   This valuable session with Peter is free to SBCA members.  If space is available, people who are not SBCA  members can attend for a $35 fee.   If you have any questions, please feel free to contact us.