| LAWS OF THE 2001 REGULAR SESSION OF THE SEVENTY-NINTH GENERAL ASSEMBLY OF THE STATE OF IOWA |
Section 1. Section 627.6, subsection 8, paragraph f, subparagraph (1), Code 2001, is amended by striking the subparagraph and inserting in lieu thereof the following:
(1) All transfers, in any amount, from a trust forming part of a stock, bonus, pension, or profit-sharing plan of an employer defined in section 401(a) of the Internal Revenue Code and of which the trust assets are exempt from taxation under section 501(a) of the Internal Revenue Code and covered by the Employee Retirement Income Security Act of 1974 (ERISA), as codified at 29 U.S.C. 1001 et seq., to either of the following:
(a) A succeeding trust authorized under federal law on or after the effective date of this Act.
(b) An individual retirement account or individual retirement annuity established under section 408(d)(3) of the Internal Revenue Code, from which the total value, including accumulated earnings and market increases in value, may be contributed to a succeeding trust authorized under federal law on or after the effective date of this Act. For purposes of this subparagraph, transfers, in any amount, from an individual retirement account or individual retirement annuity established under section 408(d)(3) of the Internal Revenue Code to an individual retirement account or individual retirement annuity established under section 408(d)(3) of the Internal Revenue Code, or an individual retirement account established under section 408(a) of the Internal Revenue Code, or an individual retirement annuity established under section 408(b) of the Internal Revenue Code, or a Roth individual retirement account, or a Roth individual retirement annuity established under section 408A of the Internal Revenue Code are exempt.
Sec. 2. Section 627.6, subsection 8, paragraph f, Code 2001, is amended by adding the following new subparagraphs:
NEW SUBPARAGRAPH. (1A) All transfers, in any amount, from an eligible retirement plan to an individual retirement account, an individual retirement annuity, a Roth individual retirement account, or a Roth individual retirement annuity established under section 408A of the Internal Revenue Code shall be exempt from execution and from the claims of creditors.
As used in this subparagraph, "eligible retirement plan" means the funds or assets in any retirement plan established under state or federal law that meet all of the following requirements:
(a) Can be transferred to an individual retirement account or individual retirement annuity established under sections 408(a) and 408(b) of the Internal Revenue Code or Roth individual retirement accounts and Roth individual retirement annuities established under section 408A of the Internal Revenue Code.
(b) Are either exempt from execution under state or federal law or are excluded from a bankruptcy estate under 11 U.S.C. § 541(c)(2) et seq.
NEW SUBPARAGRAPH. (4) For Roth individual retirement accounts and Roth individual retirement annuities established under section 408A of the Internal Revenue Code and similar plans for retirement investments authorized in the future under federal law, the exemption for contributions shall not exceed, for each tax year of contributions, the actual amount of the contribution or the maximum amount which federal law allows to be contributed to such plans. The exemption for accumulated earnings and market increases in value of plans under this subparagraph shall be limited to an amount determined by multiplying all of the accumulated earnings and market increases in value by a fraction, the numerator of which is the total amount of exempt contributions as determined by this subparagraph, and the denominator of which is the total of exempt and nonexempt contributions to the plan.
NEW SUBPARAGRAPH. (5) For all contributions to plans described in subparagraphs (3) and (4), the maximum contribution in each of the two tax years preceding the claim of exemption or filing of a bankruptcy shall be limited to the maximum deductible contribution to an individual retirement account established under section 408(a) of the Internal Revenue Code, regardless of which plan for retirement investment has been chosen by the debtor.
NEW SUBPARAGRAPH. (6) Exempt assets transferred from any individual retirement account, individual retirement annuity, Roth individual retirement account, or Roth individual retirement annuity to any other individual retirement account, individual retirement annuity, Roth individual retirement annuity, or Roth individual retirement account established under section 408A of the Internal Revenue Code shall continue to be exempt regardless of the number of times transferred between individual retirement accounts, individual retirement annuities, Roth individual retirement annuities, or Roth individual retirement accounts.
Sec. 3. Section 627.6, subsection 8, paragraph f, subparagraph (3), Code 2001, is amended to read as follows:
(3) For simplified employee pension plans, self-employed pension
plans, Keogh plans
(also known
as Keogh plans or H.R. 10 plans), individual retirement
accounts, Roth individual
retirement
accounts established under section 408(a) of the Internal Revenue Code, individual retirement annuities established under
section 408(b) of the Internal Revenue Code, savings incentive matched plans for employees, salary reduction
simplified employee pension plans (also known as SARSEPs), and similar plans for retirement investments
authorized in the future under federal law, the exemption for contributions shall not exceed, for each tax year
of contributions, the actual amount of the contribution
deducted for individual retirement accounts and
annuities established under section 408 of the Internal Revenue
Code or two thousand
dollars
the maximum amount which could be contributed and deducted in the tax year of the
contribution,1 whichever is less. The
exemption for accumulated earnings and market increases in value of plans under this subparagraph shall be limited to
an amount determined by multiplying all the accumulated earnings and market increases in value by a fraction,
the numerator of which is the total amount of exempt contributions as determined by this subparagraph, and
the denominator of which is the total of exempt and nonexempt contributions to the plan.
Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate importance, takes effect upon enactment.
Approved April 25, 2001
1 See chapter 176, §77 herein
Updated: 26-Oct-2001 02:49 PM
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