South Carolina General Assembly

121st Session, 2015-2016

S.1127

STATUS INFORMATION

General Bill

Sponsors: Senator Cleary

Document Path: l:\s-jud\bills\cleary\jud0096.kw.docx

Introduced in the Senate on February 25, 2016

Introduced in the House on April 28, 2016

Currently residing in the House Committee on Judiciary

Summary: IRA exempt from attachment, levy and sale

HISTORY OF LEGISLATIVE ACTIONS

DateBodyAction Description with journal page number

2/25/2016SenateIntroduced and read first time (Senate Journalpage7)

2/25/2016SenateReferred to Committee on Judiciary(Senate Journalpage7)

3/24/2016SenateReferred to Subcommittee: Gregory (ch), Malloy, Turner

4/20/2016SenateCommittee report: Favorable Judiciary(Senate Journalpage7)

4/21/2016Scrivener's error corrected

4/26/2016SenateRead second time (Senate Journalpage46)

4/26/2016SenateRoll call Ayes38 Nays2 (Senate Journalpage46)

4/27/2016SenateRead third time and sent to House (Senate Journalpage38)

4/28/2016HouseIntroduced and read first time (House Journalpage13)

4/28/2016HouseReferred to Committee on Judiciary(House Journalpage13)

View the latest legislative information at the website

VERSIONS OF THIS BILL

2/25/2016

4/20/2016

4/21/2016

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

April 20, 2016

S.1127

Introduced by Senator Cleary

S. Printed 4/20/16--S.[SEC 4/21/16 5:05 PM]

Read the first time February 25, 2016.

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (S.1127) to amend Section 154130, 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

[1127-1]

A BILL

TO AMEND SECTION 154130, 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:

SECTION1.Section 154130(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 12640(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 154135. 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.”

SECTION2.This act takes effect upon approval by the Governor.

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