(a)In addition to the exemptions provided in §§ 4902 and 4903 of this title, there shall be exempt from execution or attachment process assets held or amounts payable under any retirement plan, life insurance contract or annuity contract.
(b)Any amount qualifying as an “eligible rollover distribution” under § 402 of the Internal Revenue Code of 1986 [26 U.S.C. § 402], as amended, or as a “rollover contribution” under § 408 of the Internal Revenue Code of 1986 [26 U.S.C. § 408], as amended, is treated as an exempt amount under subsection (a) of this section for 60 days after the distribution of such amount. Such amount remains exempt from execution or attachment process if contributed to a retirement plan within 60 days of being distributed from a retirement plan. Free access — add to your briefcase to read the full text and ask questions with AI
(a) In addition to the exemptions provided in §§ 4902 and 4903 of this title, there shall be exempt from execution or attachment process assets held or amounts payable under any retirement plan, life insurance contract or annuity contract.
(b) Any amount qualifying as an “eligible rollover distribution” under § 402 of the Internal Revenue Code of 1986 [26 U.S.C. § 402], as amended, or as a “rollover contribution” under § 408 of the Internal Revenue Code of 1986 [26 U.S.C. § 408], as amended, is treated as an exempt amount under subsection (a) of this section for 60 days after the distribution of such amount. Such amount remains exempt from execution or attachment process if contributed to a retirement plan within 60 days of being distributed from a retirement plan.
(c) Any retirement plan described in subsection (a) of this section shall not be exempt from any claims for relief granted pursuant to Chapter 5 and/or Chapter 15 of Title 13.
(d) Any retirement plan described in subsection (a) of this section shall not be exempt from the claims of an alternate payee under a qualified domestic relations order. However, the interest of any and all alternate payees under a qualified domestic relations order shall be exempt from any and all claims of any creditor of the alternate payee. As used in this subsection, the terms “alternate payee” and “qualified domestic relations order” have the meaning ascribed to them in § 414(p) of the Internal Revenue Code of 1986 [26 U.S.C. § 414(p)], as amended.
(e) A participant or beneficiary of a retirement plan is not prohibited from granting a valid and enforceable security interest in the participant’s or beneficiary’s interest under the retirement plan to secure a loan to the participant or beneficiary from the plan, and the right to assets held in or to receive payments from the plan is subject to execution and attachment for the satisfaction of the security interest or lien granted by the participant or beneficiary to secure the loan.
(f) For purposes of this chapter, “retirement plan” means any plan, trust, account, agreement or other arrangement described in § 401, § 403, § 408, § 408A, § 409, § 414 or § 457 of the Internal Revenue Code of 1986 (26 U.S.C. § 401, § 403, § 408, § 408A, § 409, § 414 or § 457), as amended, including any such plan, trust, account, agreement or other arrangement that a decedent, upon or by reason of the decedent’s death, directly or indirectly transferred, conveyed, transmitted or otherwise left to, or for the benefit of, the owner or beneficiary by means of a will, trust, exercise of a power of appointment, beneficiary designation, transfer or payment on death designation, or any other method or procedure. The terms “life insurance contract” and “annuity contract” shall have the same meanings as under § 1035(b) of the Internal Revenue Code of 1986 (26 U.S.C. § 1035(b)), as amended.
(g) This section shall not exempt from execution or attachment any judgment obtained under § 554 of Title 30.
(h) If this section is held invalid or preempted by federal law, in whole or in part, it shall remain in effect to the maximum extent permitted by law.