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S1081................................................by JUDICIARY AND RULES
JUDGMENTS - Amends existing law to exempt Roth IRAs from the enforcement of
judgments
02/02 Senate intro - 1st rdg - to printing
02/03 Rpt prt - to Jud
02/11 Rpt out - rec d/p - to 2nd rdg
02/12 2nd rdg - to 3rd rdg
03/02 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Parry
Floor Sponsor - Darrington
Title apvd - to House
03/03 House intro - 1st rdg - to Jud
03/18 Rpt out - rec d/p - to 2nd rdg
03/19 2nd rdg - to 3rd rdg
Rules susp - PASSED - 59-1-10
AYES -- Barraclough, Bell, Bieter, Black, Boe, Callister, Campbell,
Chase, Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Kellogg, Kempton,
Kendell, Kunz, Lake, Limbaugh, Loertscher, Mader, Marley, McKague,
Meyer(Duncan), Montgomery, Moyle, Pischner, Pomeroy, Reynolds,
Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smylie, Stevenson,
Stoicheff, Stone, Tippets, Watson, Wheeler, Wood, Zimmermann,
Mr Speaker
NAYS -- Alltus
Absent and excused -- Barrett, Bruneel, Judd, Linford, Mortensen,
Smith, Taylor, Tilman, Trail, Williams
Floor Sponsor - Boe
Title apvd - to Senate
03/22 To enrol - rpt enrol - Pres signed - Sp signed
03/23 To Governor
03/24 Governor signed
Session Law Chapter 305
Effective: 07/01/99
S1081|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1081 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO THE EXEMPTION OF ROTH IRA'S FROM ENFORCEMENT OF JUDGMENTS; AMEND- 3 ING SECTION 11-604A, IDAHO CODE, TO ADD REFERENCE TO SECTION 408A OF THE 4 INTERNAL REVENUE CODE. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 11-604A, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 11-604A. PENSION MONEY EXEMPT. (1) It is the policy of the state of Idaho 9 to ensure the well-being of its citizens by protecting retirement income to 10 which they are or may become entitled. For that purpose generally and pursu- 11 ant to the authority granted to the state of Idaho under 11 U.S.C. section 12 522(b)(2), the exemptions in this section relating to retirement benefits are 13 provided. 14 (2) Unless otherwise provided by federal law, any money received by any 15 citizen of the state of Idaho as a pension from the government of the United 16 States, whether the money be in the actual possession of a citizen or be 17 deposited or loaned, shall be exempt from execution, attachment, garnishment, 18 seizure, or other levy by or under any legal process whatever. When a debtor 19 dies, or absconds, and leaves his family any money exempted by this subsec- 20 tion, the money shall be exempt to the family as provided in this subsection. 21 This subsection shall not apply to any child support collection actions, if 22 otherwise permitted by federal law. 23 (3) The right of a person to a pension, annuity, or retirement allowance 24 or disability allowance, or death benefits, or any optional benefit, or any 25 other right accrued or accruing to any citizen of the state of Idaho under any 26 employee benefit plan, and any fund created by the benefit plan or arrange- 27 ment, shall be exempt from execution, attachment, garnishment, seizure, or 28 other levy by or under any legal process whatever. This subsection shall not 29 apply to any child support collection actions, if otherwise permitted by fed- 30 eral law. This subsection shall permit benefits under any such plan or 31 arrangement to be payable to a spouse, former spouse, child, or other depend- 32 ent of a participant in the plan to the extent expressly provided for in a 33 qualified domestic relations order that meets the requirements for those 34 orders under the plan, or, in the case of benefits payable under a plan 35 described in sections 403(b) ,or408 or 408A 36 of the internal revenue code of 1986, as amended, or section 409 of the 37 internal revenue code as in effect before January 1, 1984, to the extent pro- 38 vided in any order issued by a court of competent jurisdiction that provides 39 for maintenance or support. This subsection shall not prohibit actions against 40 an employee benefit plan or fund for valid obligations incurred by the plan or 41 fund for the benefit of the plan or fund. 42 (4) For the purposes of this section, the term "employee benefit plan" 43 means: 2 1 (a) Assets held, payments made, and amounts payable under a stock bonus, 2 pension, profit-sharing, annuity, or similar plan or contract, providing 3 benefits by reason of age, illness, disability, or length of service; 4 (b) Any plan or arrangement, whether funded by a trust, an annuity con- 5 tract, an insurance contract, or an individual account, that is described 6 in sections 401(a), 403(a), 403(b),or408 or 408A 7 of the internal revenue code of 1986, as amended, or section 409 of 8 the internal revenue code as in effect before January 1, 1984. The term 9 "employee benefit plan" shall not include any employee benefit plan that 10 is established or maintained for its employees by the government of the 11 United States, by the state of Idaho or any political subdivision of the 12 state, or by any agent or instrumentality of any of the foregoing. 13 (5) An employee benefit plan shall be deemed to be a spendthrift trust, 14 regardless of the source of funds, the relationship between the beneficiary 15 and the trustee or custodian of the plan, or the ability of the debtor to 16 withdraw, borrow or otherwise become entitled to benefits from the plan before 17 retirement. This subsection shall permit benefits under any such plan or 18 arrangement to be payable to a spouse, former spouse, child, or other depend- 19 ent of a participant in the plan to the extent expressly provided for in a 20 qualified domestic relations order that meets the requirements for those 21 orders under the plan, or, in the case of benefits payable under a plan 22 described in sections 403(b) ,or408 or 408A 23 of the internal revenue code of 1986, as amended, or section 409 of the 24 internal revenue code as in effect before 1984, to the extent provided in any 25 order issued by a court of competent jurisdiction that provides home mainte- 26 nance or support.
STATEMENT OF PURPOSE
RS 08776
Certain types of retirement income and the assets providing
such income, are exempt from seizure to satisfy judgment under
state law, pursuant to authority granted by federal law in 11
U.S.C. 522(b)(2). IRA's are covered by references in Idaho
Code 11-604 to 408 of the internal revenue code. However, Roth
IRA's were enacted in a separate section, 408A, which may or
may not be covered by references to 408. Therefore, this bill
adds specific reference to 408A in the appropriate portions of
Idaho Code 11-604A to make it clear that Roth IRA's have the
same protection from seizure as traditional IRA's.
FISCAL NOTE
This bill should have no effect on revenues or expenditures.
CONTACT: Robert L. Aldrich
1209 North Eighth Street
Boise, Idaho 83702-4297
Telephone: 208-336-9880
FAX: 208-336-9882
e-mail: roberta@micron.net
STATEMENT OF PURPOSE/ FISCAL NOTE
S 1081