South Carolina General Assembly
121st Session, 2015-2016

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Bill 1127

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

April 20, 2016

S. 1127

Introduced by Senator Cleary

S. Printed 4/20/16--S.

Read the first time February 25, 2016.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (S. 1127) to amend Section 15-41-30, as amended, Code of Laws of South Carolina, 1976, relating to an individual retirement account being exempt from attachment, levy, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

GERALD MALLOY for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

Fiscal Impact Summary

This bill will have no expenditure impact on the general fund, federal funds, or other funds.

Explanation of Fiscal Impact

State Expenditure

This bill amends Section 15-41-30 to allow a debtor's Individual Retirement Account (IRA) to be exempt from a creditor's attachment, levy and sale. A claimed exemption may be reduced or eliminated by the amount of a fraudulent conveyance into the IRA.

Department of Revenue. The department indicates this bill will have no expenditure impact on the general fund, federal funds, or other funds.

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

A BILL

TO AMEND SECTION 15-41-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AN INDIVIDUAL RETIREMENT ACCOUNT BEING EXEMPT FROM ATTACHMENT, LEVY, AND SALE, SO AS TO DELETE THE PROVISION THAT THE EXEMPTION APPLIES ONLY TO THE EXTENT THAT IS PERMITTED IN SECTION 522(d) OF THE FEDERAL BANKRUPTCY CODE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 15-41-30(A)(13) of the 1976 Code, as last amended by Act 153 of 2012, is further amended to read:

"(13)    The debtor's right to receive individual retirement accounts as described in Sections 408(a) and 408A of the Internal Revenue Code, individual retirement annuities as described in Section 408(b) of the Internal Revenue Code, and accounts established as part of a trust described in Section 408(c) of the Internal Revenue Code. A claimed exemption may be reduced or eliminated by the amount of a fraudulent conveyance into the individual retirement account or other plan. For purposes of this item, "Internal Revenue Code" has the meaning provided in Section 12-6-40(A). The interest of an individual under a retirement plan shall be exempt from creditor process to the same extent permitted in Section 522(d) under federal bankruptcy law and is an exception to Section 15-41-35. The exemption provided by this section shall be available whether such individual has an interest in the retirement plan as a participant, beneficiary, contingent annuitant, alternate payee, or otherwise."

SECTION    2.    This act takes effect upon approval by the Governor.

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