Florida Senate - 2021 SB 702 By Senator Thurston 33-00380-21 2021702__ 1 A bill to be entitled 2 An act relating to individual retirement accounts; 3 amending s. 222.21, F.S.; specifying that interests in 4 certain individual retirement funds or accounts which 5 are exempt from creditor claims continue to be exempt 6 after certain transfers incident to divorce; providing 7 retroactive applicability; providing an effective 8 date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12 Section 1. Paragraph (c) of subsection (2) of section 13 222.21, Florida Statutes, is amended to read: 14 222.21 Exemption of pension money and certain tax-exempt 15 funds or accounts from legal processes.— 16 (2) 17 (c) Any money or other assets or any interest in any fund 18 or account that is exempt from claims of creditors of the owner, 19 beneficiary, or participant under paragraph (a) does not cease 20 to be exempt after the owner’s death by reason of a direct 21 transfer or eligible rollover that is excluded from gross income 22 under the Internal Revenue Code of 1986, including, but not 23 limited to, a direct transfer or eligible rollover to an 24 inherited individual retirement account as defined in s. 25 408(d)(3) of the Internal Revenue Code of 1986, as amended. Any 26 interest in any fund or account received in a transfer incident 27 to divorce as described in s. 408(d)(6) of the Internal Revenue 28 Code of 1986, as amended, continues to be exempt after the 29 transfer. This paragraph is intended to clarify existing law, is 30 remedial in nature, and shall have retroactive application to 31 all inherited individual retirement accounts and to all such 32 transfers incident to divorce without regard to the date an 33 account was created or the date the transfer was made. 34 Section 2. This act shall take effect upon becoming a law.