HBA-NMO H.B. 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 76
By: Solomons
Financial Institutions
2/8/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, traditional IRAs are protected from creditors in this state,
while Roth IRAs are not.   Roth IRAs were created by the Taxpayer Relief
Act of 1997.  Unlike a traditional IRA, an individual cannot deduct
contributions made to a Roth IRA.    H.B. 76 exempts the Roth IRA from
attachment, execution, or seizure by creditor. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 42.0021(a) and (b), Property Code, to provide
that Section 408A, in addition to Section 403(b), Internal Revenue Code of
1986, describes a retirement annuity or account that is exempt from seizure
for the satisfaction of debts.  Makes conforming changes. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Emergency clause.
            Effective date:  upon passage.