Section 09.38.017. Exemption of retirement plan interests and payments.

   (a) In addition to the exemption under AS 09.38.015(b), the following are exempt from a claim of an individual's or beneficiary's creditor:
        (1) the interest of the individual or beneficiary in a retirement plan;
        (2) the money or other assets payable to the individual from a retirement plan;
        (3) the interest of a beneficiary in
             (A) a retirement plan if the beneficiary acquired the interest as a result of the death of an individual; the beneficiary's interest is exempt to the same extent that the individual's interest was exempt immediately before the individual died;
             (B) an individual retirement account that has been transferred by the individual to the beneficiary during the individual's lifetime; the beneficiary's interest is exempt to the same extent that the individual's interest was exempt immediately before the transfer to the beneficiary;
        (4) the money or other assets payable to a beneficiary from
             (A) a retirement plan if the beneficiary acquired the money or other assets as a result of the death of an individual who would have had, during the individual's life, an exemption in the money or other assets;
             (B) an individual retirement account if the beneficiary acquired the money or other assets as a result of the transfer of the money or other assets by an individual who would have had, at the time of the transfer, an exemption in the money or other assets.
   (b) The exemptions provided by (a) of this section do not apply to a contribution made by an individual to a retirement plan within 120 days before the individual files for bankruptcy.
   (c) The exemptions provided by (a) of this section do not prevent the payment of benefits under a retirement plan to an alternate payee under a qualified domestic relations order. In this subsection, "qualified domestic relations order" has the meaning given in 26 U.S.C. 414(p).
   (d) A retirement plan exempt from claims under (a) of this section is conclusively presumed to be a spendthrift trust under this section, except for transfers or assignments under AS 34.40.118.
   (e) In this section,
        (1) "alternate payee" has the meaning given in 26 U.S.C. 414(p)(8);
        (2) "beneficiary" includes a person, trust, or trustee who has, before or after the death of an individual, a direct or indirect beneficial interest in a retirement plan; in this paragraph, "beneficial interest" includes an interest that is acquired
             (A) as a designated beneficiary, survivor, co-annuitant, heir, or legatee; or
             (B) if excludible from gross income under 26 U.S.C. (Internal Revenue Code), as a
                  (i) rollover under 26 U.S.C. 408 or 26 U.S.C. 408A;
                  (ii) distribution from one retirement plan to another retirement plan; or
                  (iii) distribution that is similar to (i) or (ii) of this subparagraph;
        (3) "individual" means a participant in, an owner of, or an alternate payee of a retirement plan;
        (4) "individual retirement account" means an individual retirement account established under 26 U.S.C. 408 or a Roth IRA established under 26 U.S.C. 408A;
        (5) "retirement plan" means
             (A) a retirement plan that is qualified under 26 U.S.C. 401(a), 26 U.S.C. 403(a), 26 U.S.C. 403(b), 26 U.S.C. 409, 26 U.S.C. 414(d), 26 U.S.C. 414(e), or 26 U.S.C. 457 (Internal Revenue Code);
             (B) an individual retirement account; and
             (C) the teachers' retirement system under AS 14.25, the judicial retirement system under AS 22.25, the public employees' retirement system under AS 39.35, and the elected public officers' retirement system under former AS 39.37.

Authorities

9.38.025;34.40.118

Notes

References

AS 9.38.025 .025">Sec. 09.38.025. Exemption of unmatured life insurance and annuity contracts.
AS 34.40.118 Transfers of individual retirement accounts.

History

(Sec. 3 ch 135 SLA 1988; am Sec. 1 ch 122 SLA 1998; am Sec. 1 - 3 ch 45 SLA 2013)