HF 2888

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to civil law; clarifying state law regarding 
  1.3             protection of retirement plan assets of debtors; 
  1.4             amending Minnesota Statutes 2002, section 550.37, 
  1.5             subdivision 24. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 550.37, 
  1.8   subdivision 24, is amended to read: 
  1.9      Subd. 24.  [EMPLOYEE BENEFITS.] (a) The debtor's right to 
  1.10  receive present or future payments, or payments received by the 
  1.11  debtor, (1) under a stock bonus, pension, profit sharing, 
  1.12  annuity, individual retirement account, Roth IRA, individual 
  1.13  retirement annuity, simplified employee pension, Keough plan, 
  1.14  plan authorized under section 401, 403, or 457 of the Internal 
  1.15  Revenue Code, or similar (2) under a plan or contract similar to 
  1.16  those included in clause (1) that is designed primarily to 
  1.17  provide benefits on account of illness, disability, death, 
  1.18  age, retirement, or length of service,; to the extent of the 
  1.19  debtor's aggregate interest under all plans and contracts up to 
  1.20  a present value of $30,000 and additional amounts under all the 
  1.21  plans and contracts to the extent reasonably necessary for the 
  1.22  support of the debtor and any spouse or dependent of the 
  1.23  debtor.  A plan or contract described in clause (1) or (2) is 
  1.24  not disqualified from protection under this paragraph on the 
  1.25  basis of a right of the debtor to make withdrawals, obtain a 
  2.1   loan, or receive other benefits prior to the occurrence of an 
  2.2   event for which the plan was primarily designed to provide 
  2.3   benefits, if the withdrawal, loan, or other benefit is not 
  2.4   prohibited by state or federal law and would result in the 
  2.5   debtor incurring a tax or other financial penalty or 
  2.6   disadvantage.  
  2.7      (b) The exemptions in paragraph (a) do not apply when the 
  2.8   debt is owed under a support order as defined in section 518.54, 
  2.9   subdivision 4a. 
  2.10     Sec. 2.  [EFFECTIVE DATE.] 
  2.11     Section 1 is effective the day following final enactment.