(a) In addition to the exemption under Alaska Stat. § 09.38.015(b), the following are exempt from a claim of an individual’s or beneficiary‘s creditor:
Terms Used In Alaska Statutes 09.38.017
Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
creditor: includes the state on behalf of a victim of a crime or a delinquent act. See Alaska Statutes 09.38.500
exempt: means protected, and "exemption" means protection, from subjection to process or a proceeding to collect an unsecured debt. See Alaska Statutes 09.38.500
Legatee: A beneficiary of a decedent
person: includes a corporation, company, partnership, firm, association, organization, business trust, or society, as well as a natural person. See Alaska Statutes 01.10.060
Trustee: A person or institution holding and administering property in trust.
(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 Alaska Stat. § 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 Alaska Stat. Chapter 14.25, the judicial retirement system under Alaska Stat. Chapter 22.25, the public employees’ retirement system under Alaska Stat. Chapter 39.35, and the elected public officers’ retirement system under former Alaska Stat. Chapter 39.37.
