An Act To Protect Individual Retirement Account! from Creditor Collection
Maine Legislature, Session 128, LD 0193
Committee Amendment CA_A_H275 (House)
Amends: 14 MRSA §4422

COMMITTEE AMENDMENT "/J,, to H.P. 149, L.D. 193, Bill, "An Act To 
Protect Individual Retirement Account! from Creditor Collection " 
Amend the bill by striking out the title and substituting the following: 
'An Act To Protect Retirement Accounts from Creditor Collection' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 14 MRSA §4422, sub-§13, ~' as amended by PL 2001, c. 306, §3, is 
further amended to read: 
D. Alimony, support or separate maintenance, to the extent reasonably necessary for 
the support ofthe debtor and any dependent of the debtor; or 
Sec. 2. 14 MRSA §4422, sub-§13, ~' as amended by PL 2001, c. 306, §4, is 
further amended to read: 
E. A payment or account under a stock bonus, pension, profitsharing, annuity or 
similar plan or contract on account of illness, disability, death, age or length of 
service, to the extent reasonably necessary for the support of the debtor and any 
dependent of the debtor, unless: 
(1) The plan or contract was established by or under the auspices of an insider 
that employed the debtor at the time the debtor's rights under the plan or contract 
arose; 
(2) The payment is on account of age or length of service; and 
(3) 
The plan or contract does not qualify under the United States Internal 
Revenue Code of +%4 1986, Section 401(a), 403(a), 403(b), 408 or 409t-er~ 
Sec. 3. 14 MRSA §4422, sub-§13, ~' as enacted by PL 2001, c. 306, §5, is 
repealed. 
Sec. 4. 14 MRSA §4422, sub-§13-A is enacted to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "4' to H.P. 149, L.D. 193 
13-A. Retirement funds. Retirement funds to the extent those funds are in a fund or 
account that is exempt from taxation under the United States Internal Revenue Code of 
1986, Section 401, 403, 408, 408A, 414, 457 or 50l(a), up to an aggregate value of 
$1,000,000. This subsection does not exempt: 
A. Amounts contributed to the account or fund within 120 days before: 
(1) The debtor files for bankruptcy if this exemption is being applied in a federal 
bankruptcy proceeding: or 
(2) If this exemption is being applied in a proceeding other than a federal 
banlauptcy proceeding or for child support or spousal support covered by 
paragraph B, the earlier of the entry of judgment or other ruling against the 
debtor or the issuance of the levy, attachment, garnishment or other execution or 
order against which this exemption is being applied; or 
B. Amounts in the account or fund necessary to satisfy child support or spousal 
support obligations.' 
SUMMARY 
This amendment replaces the bill by enacting a separate subsection governing the 
exemption from attachment of retirement accounts to match the same exemption in the 
United States Banlauptcy Code. The new subsection caps the exemption at an aggregate 
value of $1,000,000 for individual retirement accounts and other tax-deferred 
arrangements that are exempt under the United States Bankruptcy Code, 11 United States 
Code, Section 522(d)(l2). The amendment provides that amounts contributed within the 
days before either the bankruptcy action is filed or the judgment against the debtor or 
the issuance of the levy or other attachment is issued are not exempt. Amounts necessary 
to satisfy child support or spousal support obligations are also not exempt from 
attachment or banlauptcy. 
The amendment also updates a cross-reference to the United States Internal Revenue 
Code of 1986, which replaced the United States Internal Revenue Code of 1954. 
COMMITTEE AMENDMENT