83R7952 CLG-F
By: Thompson of Harris H.B. No. 2081
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of certain property from seizure by
creditors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1108.052, Insurance Code, is amended to
read as follows:
Sec. 1108.052. EXEMPTIONS UNAFFECTED BY BENEFICIARY
DESIGNATION. The exemptions provided by Section 1108.051 apply
regardless of whether:
(1) the power to change the beneficiary is reserved to
the insured; or
(2) the insured or the insured's estate is a
[contingent] beneficiary.
SECTION 2. Sections 42.0021(a) and (b), 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,
Roth IRA, or inherited Roth IRA, or a health savings account, and
under any annuity or similar contract purchased with assets
distributed from that type of plan or account, is exempt from
attachment, execution, and seizure for the satisfaction of debts to
the extent 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),
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. 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.
(b) Contributions to an individual retirement account[,
other than contributions to a Roth IRA described in Section 408A,
Internal Revenue Code of 1986, or an annuity] that exceed the
amounts permitted [deductible] under the applicable provisions of
the Internal Revenue Code of 1986 and any accrued earnings on such
contributions are not exempt under this section unless otherwise
exempt by law. Amounts qualifying as nontaxable rollover
contributions under Section 402(a)(5), 403(a)(4), 403(b)(8), or
408(d)(3) of the Internal Revenue Code of 1986 before January 1,
1993, are treated as exempt amounts under Subsection (a). Amounts
treated as qualified rollover contributions under Section 408A,
Internal Revenue Code of 1986, are treated as exempt amounts under
Subsection (a). In addition, amounts qualifying as nontaxable
rollover contributions under Section 402(c), 402(e)(6), 402(f),
403(a)(4), 403(a)(5), 403(b)(8), 403(b)(10), 408(d)(3), or 408A of
the Internal Revenue Code of 1986 on or after January 1, 1993, are
treated as exempt amounts under Subsection (a). Amounts
qualifying as nontaxable rollover contributions under Section
223(f)(5) of the Internal Revenue Code of 1986 on or after January
1, 2004, are treated as exempt amounts under Subsection (a).
SECTION 3. The changes in law made by this Act do not apply
to property that is, as of the effective date of this Act, subject
to a voluntary bankruptcy proceeding or to a valid claim of a holder
of a final judgment who has, by levy, garnishment, or other legal
process, obtained rights superior to those that would otherwise be
held by a trustee in bankruptcy if a bankruptcy petition were then
pending against the debtor. That property is subject to the law as
it existed immediately before the effective date of this Act, and
the prior law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2013.