1-1 AN ACT
1-2 relating to exempting certain individual retirement accounts from
1-3 attachment, execution, and seizure for the satisfaction of debts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 42.0021(a) and (b), Property Code, are
1-6 amended to read as follows:
1-7 (a) In addition to the exemption prescribed by Section
1-8 42.001, a person's right to the assets held in or to receive
1-9 payments, whether vested or not, under any stock bonus, pension,
1-10 profit-sharing, or similar plan, including a retirement plan for
1-11 self-employed individuals, and under any annuity or similar
1-12 contract purchased with assets distributed from that type of plan,
1-13 and under any retirement annuity or account described by Section
1-14 403(b) or 408A of the Internal Revenue Code of 1986, and under any
1-15 individual retirement account or any individual retirement annuity,
1-16 including a simplified employee pension plan, is exempt from
1-17 attachment, execution, and seizure for the satisfaction of debts
1-18 unless the plan, contract, or account does not qualify under the
1-19 applicable provisions of the Internal Revenue Code of 1986. A
1-20 person's right to the assets held in or to receive payments,
1-21 whether vested or not, under a government or church plan or
1-22 contract is also exempt unless the plan or contract does not
1-23 qualify under the definition of a government or church plan under
1-24 the applicable provisions of the federal Employee Retirement Income
2-1 Security Act of 1974. If this subsection is held invalid or
2-2 preempted by federal law in whole or in part or in certain
2-3 circumstances, the subsection remains in effect in all other
2-4 respects to the maximum extent permitted by law.
2-5 (b) Contributions to an individual retirement account, other
2-6 than contributions to a Roth IRA described in Section 408A,
2-7 Internal Revenue Code of 1986, or annuity that exceed the amounts
2-8 deductible under the applicable provisions of the Internal Revenue
2-9 Code of 1986 and any accrued earnings on such contributions are not
2-10 exempt under this section unless otherwise exempt by law. Amounts
2-11 qualifying as nontaxable rollover contributions under Section
2-12 402(a)(5), 403(a)(4), 403(b)(8), or 408(d)(3) of the Internal
2-13 Revenue Code of 1986 before January 1, 1993, are treated as exempt
2-14 amounts under Subsection (a). Amounts treated as qualified
2-15 rollover contributions under Section 408A, Internal Revenue Code of
2-16 1986, are treated as exempt amounts under Subsection (a). In
2-17 addition, amounts qualifying as nontaxable rollover contributions
2-18 under Section 402(c), 402(e)(6), 402(f), 403(a)(4), 403(a)(5),
2-19 403(b)(8), 403(b)(10), [or] 408(d)(3), or 408A of the Internal
2-20 Revenue Code of 1986 on or after January 1, 1993, are treated as
2-21 exempt amounts under Subsection (a).
2-22 SECTION 2. (a) This Act takes effect September 1, 1999.
2-23 (b) The change in law made by this Act applies to all
2-24 contributions made under Section 408A, Internal Revenue Code of
2-25 1986, before, on, or after the effective date of this Act.
2-26 SECTION 3. The importance of this legislation and the
2-27 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 76 was passed by the House on April
8, 1999, by the following vote: Yeas 144, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 76 on May 3, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 76 was passed by the Senate, with
amendments, on April 29, 1999, by the following vote: Yeas 30,
Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor