Sec. 52-321a. Trust or retirement income and certain retirement, education and medical savings accounts unavailable to creditors. Exceptions for qualified domestic relations order, recovery of costs o
Sec. 52-321a. Trust or retirement income and certain retirement, education
and medical savings accounts unavailable to creditors. Exceptions for qualified
domestic relations order, recovery of costs of incarceration and recovery of damages by victim of crime. (a) Except as provided in subsection (b) of this section, any
interest in or amounts payable to a participant or beneficiary from (1) any trust, custodial
account, annuity or insurance contract established as part of a Keogh plan or a retirement
plan established by a corporation which is qualified under Section 401, 403, 404 or 409
of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue
code of the United States, as from time to time amended, (2) any individual retirement
account which is qualified under Section 408 of said internal revenue code to the extent
funded, including income and appreciation, (A) as a roll-over from a qualified retirement
plan, as provided in subdivision (1) of this section, pursuant to Section 402(a)(5), 403(a)
or 408(d)(3) of said internal revenue code or (B) by annual contributions which do not
exceed the maximum annual limits set forth in Section 219(b) of said internal revenue
code, determined without regard to any reduction or limitation for active participants
required by Section 219(g) of said internal revenue code, (3) (A) any simple retirement
account established and funded pursuant to Section 408(p) of said internal revenue
code, (B) any simple plan established and funded pursuant to Section 401(k)(11) of said
internal revenue code, (C) any Roth IRA established and funded pursuant to Section
408A of said internal revenue code, (D) any education individual retirement account
established and funded pursuant to Section 530 of said internal revenue code, (E) any
account established pursuant to any qualified tuition program, as defined in Section
529(b) of the Internal Revenue Code, or (F) any simplified employee pension established
under Section 408(k) of said internal revenue code to the extent such pension is funded
by annual contributions within the limits of Section 408(j) of said internal revenue code
or roll-over contributions from a qualified plan, as provided in subdivision (1) of this
subsection, pursuant to Section 402(a)(5), 403(a) or 408(d)(3) of said internal revenue
code, (4) any medical savings account established under Section 220 of said internal
revenue code, to the extent such account is funded by annual deductible contributions
or a roll-over from any other medical savings account as provided in Section 220(f)(5)
of said internal revenue code, or (5) any pension plan, annuity or insurance contract or
similar arrangement not described in subdivision (1) or (2) of this subsection, established
by federal or state statute for federal, state or municipal employees for the primary
purpose of providing benefits upon retirement by reason of age, health or length of
service, shall be exempt from the claims of all creditors of such participant or beneficiary.
Any such trust, account, contract, plan or other arrangement shall be (A) conclusively
presumed to be a restriction on the transfer of a beneficial interest of the debtor in a trust
that is enforceable under the laws of this state, and (B) considered a trust which has
been created by or which has proceeded from a person other than such participant or
beneficiary, even if such participant or beneficiary is a self-employed individual, a partner of the entity sponsoring the Keogh plan or a shareholder of the corporation sponsoring the retirement plan.
(b) Nothing in this section shall impair the rights of an alternate payee under a
qualified domestic relations order, as defined in Section 414(p) of the Internal Revenue
Code of 1986, or any subsequent corresponding internal revenue code of the United
States, as from time to time amended. Nothing in this section or in subsection (m) of
section 52-352b shall impair the rights of the state to proceed under section 52-361a
to recover the costs of incarceration under section 18-85a and regulations adopted in
accordance with section 18-85a from any federal, state or municipal pension, annuity
or insurance contract or similar arrangement described in subdivision (5) of subsection
(a) of this section, provided the rights of an alternate payee under a qualified domestic
relations order, as defined in Section 414(p) of the Internal Revenue Code of 1986, or
any subsequent corresponding internal revenue code of the United States, as from time
to time amended, shall take precedence over any such recovery. Nothing in this section
or in subsection (m) of section 52-352b shall impair the rights of a victim of crime to
proceed under section 52-361a to recover damages awarded by a court of competent
jurisdiction from any federal, state or municipal pension, annuity or insurance contract
or similar arrangement described in subdivision (5) of subsection (a) of this section
when such damages are the result of a crime committed by a participant or beneficiary
of such pension, annuity or insurance contract or similar arrangement, provided the
rights of an alternate payee under a qualified domestic relations order, as defined in
Section 414(p) of the Internal Revenue Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as from time to time amended, shall take
precedence over any such recovery.
(c) Nothing in this section shall affect the status of additions or contributions to a
trust, account, contract, plan or other arrangement described in subsection (a) of this
section if (1) (A) the debtor-participant or the debtor-beneficiary is a self-employed
individual, partner of the entity sponsoring the Keogh plan or a one per cent or more
shareholder of the corporation sponsoring the retirement plan, or in the opinion of a court
of competent jurisdiction, exercises dominion and control over such proprietorship,
partnership, corporation or other entity and (B) the addition or contribution is made less
than ninety days before the filing of the claim on which the judgment is thereafter entered
or (2) such additions or contributions are determined to be a fraudulent conveyance
under applicable federal or state law.
(P.A. 91-239, S. 2, 4; P.A. 92-215; P.A. 98-202, S. 1, 2; P.A. 00-113; P.A. 01-195, S. 61, 181; P.A. 03-19, S. 119; P.A.
04-234, S. 21; P.A. 07-166, S. 14.)
History: P.A. 92-215 amended Subsec. (a) by adding provision re exemption of payments from individual retirement
accounts qualified under Section 408 of the Internal Revenue Code from the claims of creditors; P.A. 98-202 amended
Subsec. (a) by adding Subdivs. (3) and (4) re simple retirement accounts or plans, Roth IRAs, education individual retirement
accounts, simplified employee pensions, medical savings accounts and renumbered former Subdiv. (3) as (5), effective
June 8, 1998 (Revisor's note: In Subsec. (a)(4) a reference to "said internal code" was changed editorially by the Revisors
to "said internal revenue code"); P.A. 00-113 amended Subsec. (b) by adding provisions re rights of state to recover costs
of incarceration, rights of victim to recover damages awarded by court as result of crime and rights of alternate payee under
qualified domestic relations order; P.A. 01-195 made a technical change in Subsec. (b), effective July 11, 2001; P.A. 03-19 made a technical change in Subsec. (b), effective May 12, 2003; P.A. 04-234 amended Subsec. (b) to replace "costs of
incarceration" with "costs of incarceration under section 18-85a and regulations adopted in accordance with section 18-85a" and to make a technical change, effective June 8, 2004; P.A. 07-166 amended Subsec. (a)(3) by adding new Subpara.
(E) re exemption of payments from any qualified tuition program, as defined in Section 529(b) of the Internal Revenue
Code, and redesignating existing Subpara. (E) as Subpara. (F).
Subsec. (a):
Cited. 238 C. 778. P.A. 92-215 cited. Id.