In Re Seeling, 471 B.R. 320

Debtor Holly Seeling inherited 50% of a 403(b) Tax Deferred Annuity from Charles Carroll in 2007.
After Carroll's death, inheritance was rolled into an IRA titled for Carroll's benefit.
Debtor filed Chapter 7 in May 2011 and claimed the IRA as exempt under § 522(d)(12).
Trustee objected, arguing funds were not Debtor's retirement funds and that the IRA tax exemption issues were misapplied.
Debtor argued direct transfer from annuity to IRA preserves eligibility under § 522(d)(12) as retirement funds.
Court needed to determine if inherited IRAs qualify as retirement funds and are exempt from taxation under applicable IRC sections.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether an inherited IRA qualifies as retirement funds under § 522(d)(12).	Seeling asserts inherited IRA remains retirement funds; transfer does not defeat exemption.	Trustee contends funds were not originally Debtor's retirement funds and lost character after rollover.	Inherited IRAs may be retirement funds for § 522(d)(12) exemption.
Whether inherited IRA is exempt from taxation under IRC § 408(e) after transfer.	Transfer preserves exemption; 408(e) applies post-transfer.	Trustee argues § 402(c)(11) governs; not one of the listed sections in § 522(d)(12).	After transfer, inherited IRAs are exempt under § 408(e).

Rousey v. Jacoway, 544 U.S. 320 (U.S. 2005) (ordinary meaning governs undefined terms)
In re Chilton, 674 F.3d 486 (5th Cir. 2012) (inherited IRAs generally fall within retirement funds)
In re Nessa, 426 B.R. 312 (8th Cir. BAP 2010) (inherited IRAs treated as retirement funds)
In re Kuchta, 434 B.R. 837 (Bankr. N.D. Ohio 2010) (inherited IRAs qualify under § 522(d)(12))
In re Tabor, 433 B.R. 469 (Bankr. M.D. Pa. 2010) (inherited IRAs treated as retirement funds)
In re Thiem, 443 B.R. 832 (Bankr. D. Ariz. 2011) (retirement funds interpretation extends to inherited accounts)
In re Hamlin, 465 B.R. 863 (9th Cir. BAP 2012) (inherited IRA recognized as retirement funds)