Bill Text: TX SB1810 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the exemption of certain retirement accounts from access by creditors.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-06-17 - Effective immediately [SB1810 Detail]
Download: Texas-2011-SB1810-Enrolled.html
S.B. No. 1810 |
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relating to the exemption of certain retirement accounts from | ||
access by creditors. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subsections (a), (c), and (d), Section 42.0021, | ||
Property Code, are amended to read as follows: | ||
(a) In addition to the exemption prescribed by Section | ||
42.001, a person's right to the assets held in or to receive | ||
payments, whether vested or not, under any stock bonus, pension, | ||
annuity, deferred compensation, profit-sharing, or similar plan, | ||
including a retirement plan for self-employed individuals, or a | ||
simplified employee pension plan, an individual retirement account | ||
or individual retirement annuity, including an inherited | ||
individual retirement account or individual retirement annuity, or | ||
a health savings account, and under any annuity or similar contract | ||
purchased with assets distributed from that type of plan or | ||
account, [ |
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execution, and seizure for the satisfaction of debts to the extent | ||
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federal income tax, or to the extent federal income tax on the | ||
person's interest is deferred until actual payment of benefits to | ||
the person under Section 223, 401(a), 403(a), 403(b), 408(a), 408A, | ||
457(b), or 501(a), Internal Revenue Code of 1986, including a | ||
government plan or church plan described by Section 414(d) or (e), | ||
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Revenue Code of 1986. For purposes of this subsection, the interest | ||
of a person in a plan, annuity, account, or contract acquired by | ||
reason of the death of another person, whether as an owner, | ||
participant, beneficiary, survivor, coannuitant, heir, or legatee, | ||
is exempt to the same extent that the interest of the person from | ||
whom the plan, annuity, account, or contract was acquired was | ||
exempt on the date of the person's death [ |
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subsection is held invalid or preempted by federal law in whole or | ||
in part or in certain circumstances, the subsection remains in | ||
effect in all other respects to the maximum extent permitted by law. | ||
(c) Amounts distributed from a plan, annuity, account, or | ||
contract entitled to an [ |
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not subject to seizure for a creditor's claim for 60 days after the | ||
date of distribution if the amounts qualify as a nontaxable | ||
rollover contribution under Subsection (b). | ||
(d) A participant or beneficiary of a [ |
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entitled to an exemption under Subsection (a), other than an | ||
individual retirement account or individual retirement annuity, | ||
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enforceable security interest in the participant's or beneficiary's | ||
right to the assets held in or to receive payments under the exempt | ||
plan, annuity, account, or contract to secure a loan to the | ||
participant or beneficiary from the exempt plan, annuity, account, | ||
or contract, and the right to the assets held in or to receive | ||
payments from the plan, annuity, account, or contract is subject to | ||
attachment, execution, and seizure for the satisfaction of the | ||
security interest or lien granted by the participant or beneficiary | ||
to secure the loan. | ||
SECTION 2. Section 42.0021, Property Code, as amended by | ||
this Act, applies to an inherited individual retirement plan, | ||
annuity, account, or contract without regard to whether the plan, | ||
annuity, account, or contract was created before, on, or after the | ||
effective date of this Act. | ||
SECTION 3. The changes made by this Act are intended to | ||
clarify rather than change existing law. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1810 passed the Senate on | ||
April 21, 2011, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendment on May 27, 2011, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1810 passed the House, with | ||
amendment, on May 25, 2011, by the following vote: Yeas 146, | ||
Nays 0, one present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |