82R28603 TJS-F
By: Carona S.B. No. 1810
(Truitt)
Substitute the following for S.B. No. 1810: No.
A BILL TO BE ENTITLED
AN ACT
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. Sections 42.0021(a), (c), and (d), 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, [and under any retirement annuity or account described by
Section 403(b) or 408A of the Internal Revenue Code of 1986, and
under any individual retirement account or any individual
retirement annuity, including a simplified employee pension plan,
and under any health savings account described by Section 223 of the
Internal Revenue Code of 1986,] is exempt from attachment,
execution, and seizure for the satisfaction of debts to the extent
[unless] the plan, contract, annuity, or account is exempt from
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),
[does not qualify under the applicable provisions of the] Internal
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. [A person's right to the
assets held in or to receive payments, whether vested or not, under
a government or church plan or contract is also exempt unless the
plan or contract does not qualify under the definition of a
government or church plan under the applicable provisions of the
federal Employee Retirement Income Security Act of 1974.] If this
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 [the] exemption under Subsection (a) are
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 [stock bonus, pension,
profit-sharing, retirement] plan, annuity, account, or contract
entitled to an exemption under Subsection (a), other than an
individual retirement account or individual retirement annuity,
[or government plan] is not prohibited from granting a valid and
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.