In Re Mathusa, 446 B.R. 601

Debtors James and Marilynn Mathusa filed Chapter 7 and claimed exemptions for an inherited IRA in 2010.
The IRA, titled Raymond James Financial Services, Inc. IRA Retirement Account, was inherited by the debtors from Marilynn's mother.
Debtors transferred the inherited IRA as a trustee-to-trustee transfer into the debtors' own IRA account following inherited-IRA rules.
Trustee objected, arguing the inherited IRA is not exempt under Florida law or the Bankruptcy Code.
Court analyzes whether an inherited IRA retains exemption under 11 U.S.C. § 522(b)(3)(C) in Florida (opt-out state) and the effect of direct transfers under § 522(b)(4)(C).
Court adopts and extends Nessa to hold inherited IRAs remain exempt under § 522(b)(3)(C) when properly classified as retirement funds exempt from taxation.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether inherited IRA qualifies for exemption under §522(b)(3)(C).	Mathusas argue inherited IRA is retirement funds exempt under §522(b)(3)(C).	Meininger contends inherited IRA loses exemption or does not meet §522(b)(3)(C) criteria.	Inherited IRA is exempt under §522(b)(3)(C).
Effect of direct transfer on exemption under §522(b)(4)(C).	Direct transfer does not destroy exemption status for inherited IRA.	Transfer could jeopardize exemption status.	Direct transfer did not destroy exemption; exemption preserved.
Whether Nessa reasoning applies to inherited IRAs in Florida opt-out states.	Nessa supports exemption of inherited IRAs under federal scheme.	Nessa may not apply; Florida opt-out changes analysis.	Nessa reasoning is applicable; inherited IRA exempt under §522(b)(3)(C).

In re Nessa, 426 B.R. 312 (8th Cir. BAP 2010) (held inherited IRAs can be exempt under §522(d)(12) and §522(b)(4)(C))
In re Tabor, 433 B.R. 469 (Bankr. M.D. Pa. 2010) (discusses interpretation of §522(b)(3)(C) in opt-out states)