CONFERENCE COMMITTEE REP. NO.72

Honolulu, Hawaii

, 2005

RE: H.B. No. 477

H.D. 1

S.D. 1

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 477, H.D. 1, S.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to provide greater protection to an individual's retirement moneys by granting Roth individual retirement or 408A accounts (Roth IRAs) the same protection from creditor claims afforded to regular individual retirement of 408 accounts (regular IRAs).

Your Committee on Conference finds that both regular IRAs and Roth IRAs are sound financial vehicles for retirement planning, and allow individuals to enjoy the benefit of tax-deferred growth on their retirement savings year after year.

Your Committee on Conference further finds, however, that while both regular 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 creditors' claims.

Upon consideration of the Senate draft, your Committee on Conference has amended this bill by removing its July 1, 2099, effective date, and providing that the bill becomes effective upon approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 477, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 477, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

RON MENOR, Chair

____________________________

KENNETH HIRAKI, Co-Chair

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COLLEEN HANABUSA, Co-Chair

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SYLVIA LUKE, Co-Chair