Text: HF00653 Text: HF00655 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 654 1 2 1 3 AN ACT 1 4 RELATING TO THE AMOUNT OF CONTRIBUTIONS TO AND ACCUMULATED 1 5 INCREASES IN THE VALUE OF CERTAIN RETIREMENT PLANS WHICH ARE 1 6 EXEMPT FROM CREDITORS AND PROVIDING AN EFFECTIVE DATE. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 627.6, subsection 8, paragraph f, 1 11 subparagraph (1), Code 2001, is amended by striking the 1 12 subparagraph and inserting in lieu thereof the following: 1 13 (1) All transfers, in any amount, from a trust forming 1 14 part of a stock, bonus, pension, or profit-sharing plan of an 1 15 employer defined in section 401(a) of the Internal Revenue 1 16 Code and of which the trust assets are exempt from taxation 1 17 under section 501(a) of the Internal Revenue Code and covered 1 18 by the Employee Retirement Income Security Act of 1974 1 19 (ERISA), as codified at 29 U.S.C. 1001 et seq., to either of 1 20 the following: 1 21 (a) A succeeding trust authorized under federal law on or 1 22 after the effective date of this Act. 1 23 (b) An individual retirement account or individual 1 24 retirement annuity established under section 408(d)(3) of the 1 25 Internal Revenue Code, from which the total value, including 1 26 accumulated earnings and market increases in value, may be 1 27 contributed to a succeeding trust authorized under federal law 1 28 on or after the effective date of this Act. For purposes of 1 29 this subparagraph, transfers, in any amount, from an 1 30 individual retirement account or individual retirement annuity 1 31 established under section 408(d)(3) of the Internal Revenue 1 32 Code to an individual retirement account or individual 1 33 retirement annuity established under section 408(d)(3) of the 1 34 Internal Revenue Code, or an individual retirement account 1 35 established under section 408(a) of the Internal Revenue Code, 2 1 or an individual retirement annuity established under section 2 2 408(b) of the Internal Revenue Code, or a Roth individual 2 3 retirement account, or a Roth individual retirement annuity 2 4 established under section 408A of the Internal Revenue Code 2 5 are exempt. 2 6 Sec. 2. Section 627.6, subsection 8, paragraph f, Code 2 7 2001, is amended by adding the following new subparagraphs: 2 8 NEW SUBPARAGRAPH. (1A) All transfers, in any amount, from 2 9 an eligible retirement plan to an individual retirement 2 10 account, an individual retirement annuity, a Roth individual 2 11 retirement account, or a Roth individual retirement annuity 2 12 established under section 408A of the Internal Revenue Code 2 13 shall be exempt from execution and from the claims of 2 14 creditors. 2 15 As used in this subparagraph, "eligible retirement plan" 2 16 means the funds or assets in any retirement plan established 2 17 under state or federal law that meet all of the following 2 18 requirements: 2 19 (a) Can be transferred to an individual retirement account 2 20 or individual retirement annuity established under sections 2 21 408(a) and 408(b) of the Internal Revenue Code or Roth 2 22 individual retirement accounts and Roth individual retirement 2 23 annuities established under section 408A of the Internal 2 24 Revenue Code. 2 25 (b) Are either exempt from execution under state or 2 26 federal law or are excluded from a bankruptcy estate under 11 2 27 U.S.C. } 541(c)(2) et seq. 2 28 NEW SUBPARAGRAPH. (4) For Roth individual retirement 2 29 accounts and Roth individual retirement annuities established 2 30 under section 408A of the Internal Revenue Code and similar 2 31 plans for retirement investments authorized in the future 2 32 under federal law, the exemption for contributions shall not 2 33 exceed, for each tax year of contributions, the actual amount 2 34 of the contribution or the maximum amount which federal law 2 35 allows to be contributed to such plans. The exemption for 3 1 accumulated earnings and market increases in value of plans 3 2 under this subparagraph shall be limited to an amount 3 3 determined by multiplying all of the accumulated earnings and 3 4 market increases in value by a fraction, the numerator of 3 5 which is the total amount of exempt contributions as 3 6 determined by this subparagraph, and the denominator of which 3 7 is the total of exempt and nonexempt contributions to the 3 8 plan. 3 9 NEW SUBPARAGRAPH. (5) For all contributions to plans 3 10 described in subparagraphs (3) and (4), the maximum 3 11 contribution in each of the two tax years preceding the claim 3 12 of exemption or filing of a bankruptcy shall be limited to the 3 13 maximum deductible contribution to an individual retirement 3 14 account established under section 408(a) of the Internal 3 15 Revenue Code, regardless of which plan for retirement 3 16 investment has been chosen by the debtor. 3 17 NEW SUBPARAGRAPH. (6) Exempt assets transferred from any 3 18 individual retirement account, individual retirement annuity, 3 19 Roth individual retirement account, or Roth individual 3 20 retirement annuity to any other individual retirement account, 3 21 individual retirement annuity, Roth individual retirement 3 22 annuity, or Roth individual retirement account established 3 23 under section 408A of the Internal Revenue Code shall continue 3 24 to be exempt regardless of the number of times transferred 3 25 between individual retirement accounts, individual retirement 3 26 annuities, Roth individual retirement annuities, or Roth 3 27 individual retirement accounts. 3 28 Sec. 3. Section 627.6, subsection 8, paragraph f, 3 29 subparagraph (3), Code 2001, is amended to read as follows: 3 30 (3) For simplified employee pension plans, self-employed 3 31 pension plans, Keogh plans(also known as Keogh plans or H.R. 3 32 10 plans), individual retirementaccounts, Roth individual3 33retirementaccounts established under section 408(a) of the 3 34 Internal Revenue Code, individual retirement annuities 3 35 established under section 408(b) of the Internal Revenue Code, 4 1 savings incentive matched plans for employees, salary 4 2 reduction simplified employee pension plans (also known as 4 3 SARSEPs), and similar plans for retirement investments 4 4 authorized in the future under federal law, the exemption for 4 5 contributions shall not exceed, for each tax year of 4 6 contributions, the actual amount of the contribution deducted 4 7 for individual retirement accounts and annuities established 4 8 under section 408 of the Internal Revenue Code ortwo thousand4 9dollarsthe maximum amount which could be contributed and 4 10 deducted in the tax year of the contribution, whichever is 4 11 less. The exemption for accumulated earnings and market 4 12 increases in value of plans under this subparagraph shall be 4 13 limited to an amount determined by multiplying all the 4 14 accumulated earnings and market increases in value by a 4 15 fraction, the numerator of which is the total amount of exempt 4 16 contributions as determined by this subparagraph, and the 4 17 denominator of which is the total of exempt and nonexempt 4 18 contributions to the plan. 4 19 Sec. 4. EFFECTIVE DATE. This Act, being deemed of 4 20 immediate importance, takes effect upon enactment. 4 21 4 22 4 23 4 24 BRENT SIEGRIST 4 25 Speaker of the House 4 26 4 27 4 28 4 29 MARY E. KRAMER 4 30 President of the Senate 4 31 4 32 I hereby certify that this bill originated in the House and 4 33 is known as House File 654, Seventy-ninth General Assembly. 4 34 4 35 5 1 5 2 MARGARET THOMSON 5 3 Chief Clerk of the House 5 4 Approved , 2001 5 5 5 6 5 7 5 8 THOMAS J. VILSACK 5 9 Governor
Text: HF00653 Text: HF00655 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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