AN ACT EXEMPTING CERTAIN RETIREMENT, EDUCATION AND MEDICAL SAVINGS ACCOUNTS FROM THE CLAIMS OF CREDITORS. Be it enacted by the Senate and House of Representatives in General Assembly convened:


          Substitute Senate Bill No. 600
          Substitute Senate Bill No. 600

              PUBLIC ACT NO. 98-202


AN ACT EXEMPTING CERTAIN RETIREMENT, EDUCATION AND
MEDICAL  SAVINGS  ACCOUNTS   FROM  THE  CLAIMS  OF
CREDITORS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1. Section  52-321a  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (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,  [or]  (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, OR
(E) 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  ROLLOVER
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
ROLLOVER FROM ANY OTHER MEDICAL SAVINGS ACCOUNT AS
PROVIDED IN SECTION  220(f)(5)  OF  SAID  INTERNAL
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.
    (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.
    Sec. 2. This  act  shall  take effect from its
passage.

Approved June 8, 1998