HB 469

A bill to be entitled
2An act relating to individual retirement accounts;
3amending s. 222.21, F.S.; clarifying the exemption of
4inherited individual retirement accounts from legal
5processes; providing intent; providing for retroactive
6application; providing an effective date.
8     WHEREAS, many residents of this state have individual
9retirement accounts, relying upon the Legislature's intent that
10individual retirement accounts be exempt from claims of
11creditors, and
12     WHEREAS, the Legislature clearly intended in s.
13222.21(2)(c), Florida Statutes, that inherited individual
14retirement accounts included in s. 402(c) of the Internal
15Revenue Code of 1986, as amended, be exempt from claims of
16creditors of the owner, beneficiary, or participant of the
17inherited individual retirement account, and
18     WHEREAS, in Robertson v. Deeb, 16 So. 3d 936 (Fla. 2d DCA
192009) the appellate court, contrary to the Legislature's intent,
20held that an inherited individual retirement account was not
21exempt from the beneficiaries' creditors because such an account
22was not included in property described in s. 222.21, Florida
23Statutes, a decision that was followed in the Bankruptcy Court
24of the Middle District of Florida, In re: Ard, 435 B.R. 719
25(Bkrtcy. M.D. Fla. 2010), NOW, THEREFORE,
27Be It Enacted by the Legislature of the State of Florida:
29     Section 1.  Paragraph (c) of subsection (2) of section
30222.21, Florida Statutes, is amended to read:
31     222.21  Exemption of pension money and certain tax-exempt
32funds or accounts from legal processes.-
33     (2)
34     (c)  Any money or other assets or any interest in any fund
35or account that is are exempt from claims of creditors of the
36owner, beneficiary, or participant under paragraph (a) does do
37not cease to be exempt after the owner's death to qualify for
38exemption by reason of a direct transfer or eligible rollover
39that is excluded from gross income under s. 402(c) of the
40Internal Revenue Code of 1986, including, but not limited to, a
41direct transfer or eligible rollover to an inherited individual
42retirement account as defined in s. 408(d)(3) of the Internal
43Revenue Code of 1986, as amended. This paragraph is intended to
44clarify existing law, is remedial in nature, and shall have
45retroactive application to all inherited individual retirement
46accounts without regard to the date an account was created.
47     Section 2.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.