Brief⁽¹⁾

S.B. 143 amends the Code of Civil Procedure dealing with debtor property exempt from attachment, garnishment, and bankruptcy to add Roth individual retirement accounts to the current list of exempt property.

Background

The bill was supported by the Kansas Bar Association and the Kansas Association of Life Underwriters. In August 1997, Congress passed legislation creating the Roth IRA. This new retirement vehicle allows individuals to contribute funds on an after-tax basis that will grow free of future income taxation unlike the traditional IRA which is fully taxable at retirement. Without the amendment to Kansas law, estate planners cannot recommend the Roth IRA without qualification since these funds are subject to attachment or garnishment by a judgment creditor.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.