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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of certain retirement accounts from |
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access by creditors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.0021, Property Code, is amended by |
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amending Subsection (a) and adding Subsection (g) to read as |
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follows: |
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(a) In addition to the exemption prescribed by Section |
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42.001, a person's right to the assets held in or to receive |
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payments, whether vested or not, under any stock bonus, pension, |
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profit-sharing, or similar plan, including a retirement plan for |
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self-employed individuals, and under any annuity or similar |
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contract purchased with assets distributed from that type of plan, |
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and under any retirement annuity or account described by Section |
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403(b) or 408A of the Internal Revenue Code of 1986, and under any |
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individual retirement account or any individual retirement |
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annuity, including a simplified employee pension plan, and under |
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any health savings account described by Section 223 of the Internal |
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Revenue Code of 1986, is exempt from attachment, execution, and |
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seizure for the satisfaction of debts unless the plan, contract, |
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annuity, or account does not qualify under the applicable |
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provisions of the Internal Revenue Code of 1986. For purposes of |
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this subsection, the interest of a beneficiary in a plan, contract, |
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annuity, or account acquired by reason of the death of any person, |
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whether or not the beneficiary's spouse, is considered qualified |
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under the applicable provisions of the Internal Revenue Code of |
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1986 to the same extent that the interest of the person from whom |
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the plan, contract, annuity, or account was acquired was qualified |
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on the date of the person's death. A person's right to the assets |
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held in or to receive payments, whether vested or not, under a |
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government or church plan or contract is also exempt unless the plan |
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or contract does not qualify under the definition of a government or |
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church plan under the applicable provisions of the federal Employee |
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Retirement Income Security Act of 1974. If this subsection is held |
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invalid or preempted by federal law in whole or in part or in |
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certain circumstances, the subsection remains in effect in all |
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other respects to the maximum extent permitted by law. |
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(g) Assets and amounts exempted under Subsection (a) are |
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exempt regardless of whether the person is an owner, participant, |
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or beneficiary of the plan, contract, annuity, or account. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |