Florida Senate - 2011 SB 978 By Senator Flores 38-01000A-11 2011978__ 1 A bill to be entitled 2 An act relating to individual retirement accounts; 3 amending s. 222.21, F.S.; clarifying the exemption of 4 inherited individual retirement accounts from legal 5 processes; providing intent; providing for retroactive 6 application; providing an effective date. 7 8 WHEREAS, many residents of this state have individual 9 retirement accounts, relying upon the Legislature’s intent that 10 individual retirement accounts be exempt from claims of 11 creditors, and 12 WHEREAS, the Legislature clearly intended in s. 13 222.21(2)(c), Florida Statutes, that inherited individual 14 retirement accounts included in s. 402(c) of the Internal 15 Revenue Code of 1986, as amended, be exempt from claims of 16 creditors of the owner, beneficiary, or participant of the 17 inherited individual retirement account, and 18 WHEREAS, in Robertson v. Deeb, 16 So. 3d 936 (Fla. 2d DCA 19 2009) the appellate court, contrary to the Legislature’s intent, 20 held that an inherited individual retirement account was not 21 exempt from the beneficiaries’ creditors because such an account 22 was not included in property described in s. 222.21, Florida 23 Statutes, a decision that was followed in the Bankruptcy Court 24 of the Middle District of Florida, In re: Ard, 435 B.R. 719 25 (Bkrtcy. M.D. Fla. 2010), NOW, THEREFORE, 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Paragraph (c) of subsection (2) of section 30 222.21, Florida Statutes, is amended to read: 31 222.21 Exemption of pension money and certain tax-exempt 32 funds or accounts from legal processes.— 33 (2) 34 (c) Any money or other assets or any interest in any fund 35 or account that is
areexempt from claims of creditors of the 36 owner, beneficiary, or participant under paragraph (a) does do37 not cease to be exempt after the owner’s death to qualify for38 exemptionby reason of a direct transfer or eligible rollover 39 that is excluded from gross income under s. 402(c) ofthe 40 Internal Revenue Code of 1986, including, but not limited to, a 41 direct transfer or eligible rollover to an inherited individual 42 retirement account as defined in s. 408(d)(3) of the Internal 43 Revenue Code of 1986, as amended. This paragraph is intended to 44 clarify existing law, is remedial in nature, and shall have 45 retroactive application to all inherited individual retirement 46 accounts without regard to the date an account was created. 47 Section 2. This act shall take effect upon becoming a law.