STAND. COM. REP. 2949

Honolulu, Hawaii

, 2004

RE: H.B. No. 2064

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 2064 entitled:

"A BILL FOR AN ACT RELATING TO EXEMPTING ROTH INDIVIDUAL RETIREMENT ACCOUNTS FROM ATTACHMENT OR SEIZURE,"

begs leave to report as follows:

The purpose of this measure is to exempt Roth individual retirement accounts (IRAs) from the claims of creditors pursuant to attachment, execution, seizure, the operation of bankruptcy or insolvency laws under 11 U.S.C. §522(b), or under any legal process.

The Department of Taxation testified in support of this measure.

Your Committee finds that IRAs are valuable financial tools for retirement planning. Both traditional and Roth IRAs allow individuals to enjoy the benefit of tax-deferred growth on their retirement savings year after year, but each type of IRA is utilized differently depending upon an individual's current situation and future needs.

Your Committee further finds, however, that while both traditional IRAs and Roth IRAs are retirement instruments, only the former is protected from the claims of creditors under current law. This measure corrects this oversight by specifically including retirement funds in a Roth IRA as benefits exempt from attachment or seizure.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2064, and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair