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House Study Bill 6

Bill Text

PAG LIN
  1  1    Section 1.  Section 627.6, subsection 8, paragraph a, Code
  1  2 1999, is amended to read as follows:
  1  3    a.  A social security benefit, unemployment compensation,
  1  4 or a local any public assistance benefit.
  1  5    Sec. 2.  Section 627.6, subsection 8, Code 1999, is amended
  1  6 by adding the following new paragraph:
  1  7    NEW PARAGRAPH.  f.  All contributions to and assets in the
  1  8 following list of plans or contracts and the accumulated
  1  9 earnings, and market increases in value, therefrom:
  1 10 simplified employee pension plans, self-employed pension
  1 11 plans, Keogh plans, individual retirement accounts, Roth
  1 12 individual retirement accounts, and similar plans for
  1 13 retirement investments in the future authorized under federal
  1 14 law.  However, contributions to a plan shall not be exempt to
  1 15 the extent that the contributions for the twenty-four-month
  1 16 period prior to the date the exemption is claimed or execution
  1 17 is issued exceed ten thousand dollars in the aggregate over
  1 18 and above the average contributions that had been made to the
  1 19 plan or plans by the debtor or the debtor's employer or both
  1 20 in the five tax years ending prior to the twenty-four-month
  1 21 period before the date the exemption is claimed or the
  1 22 execution is issued.  The exception to the exemption in this
  1 23 paragraph for contributions within the twenty-four-month
  1 24 period prior to the date the exemption is claimed or execution
  1 25 is issued shall not include the interest and any accumulation
  1 26 on that interest in any new plans or contracts that are used
  1 27 to replace prior plans, contracts, or policies that would have
  1 28 been excludable from a bankruptcy estate or that the debtor
  1 29 could have claimed exempt from execution at the time of the
  1 30 transfer.  For purposes of this paragraph, market increases in
  1 31 value shall include, but not be limited to, dividends, stock
  1 32 splits, interest, and appreciation.  
  1 33                           EXPLANATION 
  1 34    Present law provides that a resident debtor may hold exempt
  1 35 from execution the debtor's rights in a local public
  2  1 assistance benefit.  The bill amends this exemption to
  2  2 eliminate the adjective "local," thus making exempt the
  2  3 debtor's rights in any public assistance benefit.
  2  4    The bill also makes exempt from execution certain
  2  5 retirement benefits.  However, the exemption does not include
  2  6 contributions to a plan within the 24 months prior to the date
  2  7 of exemption or execution if such contributions exceed $10,000
  2  8 in the aggregate over and above average contributions made to
  2  9 the plan in the five tax years prior to the 24-month period.  
  2 10 LSB 1029YC 78
  2 11 jj/jl/8
     

Text: HSB00005                          Text: HSB00007
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