SENATE BILL NO. 1243

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Daily Data Tracking History



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
      NAYS--None
      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
         Effective: 07/01/99

Bill Text


S1243


                                                                        
 ||||              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 / Fiscal Impact


                            STATEMENT OF PURPOSE
                                      
                                   RS09166

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.

                                      
                                      
                                      
                                 FISCAL NOTE

This bill should have no effect on revenues or expenditures.







CONTACT: Robert L.Aldridge
         (208) 336-9880                                                 






STATEMENT OF PURPOSE/ FISCAL NOTE              S1243