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H.B. No. 330
AN ACT
relating to exempting health savings accounts from seizure for
satisfaction of debts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 42.0021, Property Code,
is amended to read as follows:
Sec. 42.0021. ADDITIONAL EXEMPTION FOR CERTAIN SAVINGS
PLANS [RETIREMENT PLAN].
SECTION 2. Sections 42.0021(a) and (b), Property Code, are
amended to read as follows:
(a) In addition to the exemption prescribed by Section
42.001, a person's right to the assets held in or to receive
payments, whether vested or not, under any stock bonus, pension,
profit-sharing, or similar plan, including a retirement plan for
self-employed individuals, and under any annuity or similar
contract purchased with assets distributed from that type of plan,
and under any retirement annuity or account described by Section
403(b) or 408A of the Internal Revenue Code of 1986, and under any
individual retirement account or any individual retirement
annuity, including a simplified employee pension plan, and under
any health savings account described by Section 223 of the Internal
Revenue Code of 1986, is exempt from attachment, execution, and
seizure for the satisfaction of debts unless the plan, contract, or
account does not qualify under the applicable provisions of the
Internal Revenue Code of 1986. A person's right to the assets held
in or to receive payments, whether vested or not, under a government
or church plan or contract is also exempt unless the plan or
contract does not qualify under the definition of a government or
church plan under the applicable provisions of the federal Employee
Retirement Income Security Act of 1974. If this subsection is held
invalid or preempted by federal law in whole or in part or in
certain circumstances, the subsection remains in effect in all
other respects to the maximum extent permitted by law.
(b) Contributions to an individual retirement account,
other than contributions to a Roth IRA described in Section 408A,
Internal Revenue Code of 1986, or an annuity that exceed the amounts
deductible under the applicable provisions of the Internal Revenue
Code of 1986 and any accrued earnings on such contributions are not
exempt under this section unless otherwise exempt by law. Amounts
qualifying as nontaxable rollover contributions under Section
402(a)(5), 403(a)(4), 403(b)(8), or 408(d)(3) of the Internal
Revenue Code of 1986 before January 1, 1993, are treated as exempt
amounts under Subsection (a). Amounts treated as qualified
rollover contributions under Section 408A, Internal Revenue Code of
1986, are treated as exempt amounts under Subsection (a). In
addition, amounts qualifying as nontaxable rollover contributions
under Section 402(c), 402(e)(6), 402(f), 403(a)(4), 403(a)(5),
403(b)(8), 403(b)(10), 408(d)(3), or 408A of the Internal Revenue
Code of 1986 on or after January 1, 1993, are treated as exempt
amounts under Subsection (a). Amounts qualifying as nontaxable
rollover contributions under Section 223(f)(5) of the Internal
Revenue Code of 1986 on or after January 1, 2004, are treated as
exempt amounts under Subsection (a).
SECTION 3. The change in law made by this Act applies to all
contributions made under Section 223, Internal Revenue Code of
1986, before, on, or after the effective date of this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 330 was passed by the House on March
31, 2005, by the following vote: Yeas 144, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 330 was passed by the Senate on May
10, 2005, by the following vote: Yeas 24, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor