SRC-ARR C.S.H.B. 76 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 76
76R12919 PAM-FBy: Solomons (Carona)
Jurisprudence
4/19/1999
Committee Report (Substituted)


DIGEST 

Currently, traditional IRAs are protected from creditors in this state,
while Roth IRAs are not. Roth IRAs were created by the Taxpayer Relief Act
of 1997. Unlike a traditional IRA, an individual cannot deduct
contributions made to a Roth IRA from the individual's taxable income.
C.S.H.B. 76 exempts the Roth IRA from attachment, executions, or seizure by
creditors.  

PURPOSE

As proposed, C.S.H.B. 76 regulates the exemption of certain individual
retirement accounts from attachment, execution, and seizure for the
satisfaction of debts.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 42.0021(a) and (b), Property Code, to provide
that a person's right to receive payments, whether vested or not, under any
stock bonus, pension, profit-sharing, or similar plan, including a
retirement plan for a contract purchased with assets distributed from that
type of plan, and under any retirement annuity or account described by
Section 403(b) or 408A of the Internal Revenue Code of 1986 is exempt from
certain conditions. Provides that contributions to an individual retirement
account, other than contributions to a Roth IRA described in Section 408A,
Internal Revenue Code of 1986, are not exempt under this section unless
otherwise exempt by law. Provides that amounts treated as qualified
rollover contributions under Section 408A, Internal Revenue Code of 1986,
are exempt amounts under Subsection (a). Makes conforming changes.  

SECTION 2. Effective date: September 1, 1999.
           Makes application of this Act retroactive.

SECTION 3. Emergency clause.
                     
SUMMARY OF COMMITTEE CHANGES

SECTION 2. 

 Adds effective date: September 1, 1999. Makes application of this Act
retroactive. 

SECTION 3. 

 Deletes effective date.