Print Friendly SENATE BILL NO. 1243 – Judgments, Roth IRAs exempt
SENATE BILL NO. 1243
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S1243................................................by JUDICIARY AND RULES
ROTH IRA - JUDGMENTS - Amends existing law to exempt Roth IRAs from claims
of judgment creditors arising out of a negligent or otherwise wrongful act
or omission of the beneficiary or participant which results in monetary
damages to the judgment creditor.
03/01 Senate intro - 1st rdg - to printing
03/02 Rpt prt - to Jud
03/08 Rpt out - rec d/p - to 2nd rdg
03/09 2nd rdg - to 3rd rdg
03/16 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
Absent and excused--Parry
Floor Sponsor - Bunderson
Title apvd - to House
03/17 House intro - 1st rdg - to Rev/Tax
03/18 Rpt out - rec d/p - to 2nd rdg
03/19 2nd rdg - to 3rd rdg
Rules susp - PASSED - 61-0-9
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
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,
Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, 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 -- None
Absent and excused -- Barrett, Linford, Loertscher, Mortensen, Smith,
Taylor, Tilman, Trail, Williams
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 337
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature First Regular Session - 1999
IN THE SENATE
SENATE BILL NO. 1243
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO EXEMPTION OF PENSION MONEY AND RETIREMENT OR PROFIT-SHARING BENE-
3 FITS FROM LEGAL PROCESSES; AMENDING SECTION 55-1011, IDAHO CODE, TO ADD
4 REFERENCE TO SECTION 408A OF THE INTERNAL REVENUE CODE, AS AMENDED.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 55-1011, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 55-1011. EXEMPTION OF PENSION MONEY AND RETIREMENT OR PROFIT-SHARING BEN-
9 EFITS FROM LEGAL PROCESSES. (1) Except as provided in subsection (2) of this
10 section, any money or other assets payable to a participant or beneficiary
11 from or any interest of any participant or beneficiary in, a retirement or
12 profit-sharing plan that is qualified under sections 401(a), 403(a), 403(b),
13 408 , 408A or 409 of the internal revenue code, as amended, is
14 exempt from all claims of judgment creditors of the beneficiary or participant
15 arising out of a negligent or otherwise wrongful act or omission of the bene-
16 ficiary or participant resulting in monetary damages to the judgment creditor.
17 The exemption provided by this subsection shall be in addition to that pro-
18 vided in this chapter.
19 (2) Any plan or arrangement described in subsection (1) of this section
20 is not exempt from the claims of an alternate payee under a qualified domestic
21 relations order. However, the interest of any alternate payee under a quali-
22 fied domestic relations order is exempt from all claims of any creditor, other
23 than the department of health and welfare, or the alternate payee. As used in
24 this subsection, the terms "alternate payee" and "qualified domestic relations
25 order" have the meanings ascribed to them in section 414(p) of the internal
26 revenue code of 1986.
27 (3) The provisions of subsection (1) of this section apply to any pro-
28 ceeding that is filed on or after July 1, 1988.
STATEMENT OF PURPOSE
Certain types of retirement income and the assets providing such
income, are exempt from seizure to satisfy judgments 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 and 55-1011 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 55-1011 (and a companion bill
SB1081 amends 11-604A) to make it clear that Roth IRA's have the same
protection from seizure and other legal process as traditional IRA's.
This bill should have no effect on revenues or expenditures.
CONTACT: Robert L.Aldridge
STATEMENT OF PURPOSE/ FISCAL NOTE S1243