1999 Legislation
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SENATE BILL NO. 1081 – Judgments, Roth IRAs exempt

SENATE BILL NO. 1081

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Daily Data Tracking History



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

Bill Text


S1081


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN 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) ,   or  408   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),  or    408    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) ,   or  408  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 / Fiscal Impact


                      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