119 STAT. 64
PUBLIC LAW 109–8—APR. 20, 2005 not cease to qualify for exemption under paragraph (3)(C) or subsection (d)(12) by reason of such distribution. ‘‘(ii) A distribution described in this clause is an amount that— ‘‘(I) has been distributed from a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986; and ‘‘(II) to the extent allowed by law, is deposited in such a fund or account not later than 60 days after the distribution of such amount.’’; and (2) in subsection (d)— (A) in the matter preceding paragraph (1), by striking ‘‘subsection (b)(1)’’ and inserting ‘‘subsection (b)(2)’’; and (B) by adding at the end the following: ‘‘(12) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.’’. (b) AUTOMATIC STAY.—Section 362(b) of title 11, United States Code, is amended— (1) in paragraph (17), by striking ‘‘or’’ at the end; (2) in paragraph (18), by striking the period and inserting a semicolon; and (3) by inserting after paragraph (18) the following: ‘‘(19) under subsection (a), of withholding of income from a debtor’s wages and collection of amounts withheld, under the debtor’s agreement authorizing that withholding and collection for the benefit of a pension, profit-sharing, stock bonus, or other plan established under section 401, 403, 408, 408A, 414, 457, or 501(c) of the Internal Revenue Code of 1986, that is sponsored by the employer of the debtor, or an affiliate, successor, or predecessor of such employer— ‘‘(A) to the extent that the amounts withheld and collected are used solely for payments relating to a loan from a plan under section 408(b)(1) of the Employee Retirement Income Security Act of 1974 or is subject to section 72(p) of the Internal Revenue Code of 1986; or ‘‘(B) a loan from a thrift savings plan permitted under subchapter III of chapter 84 of title 5, that satisfies the requirements of section 8433(g) of such title; but nothing in this paragraph may be construed to provide that any loan made under a governmental plan under section 414(d), or a contract or account under section 403(b), of the Internal Revenue Code of 1986 constitutes a claim or a debt under this title;’’. (c) EXCEPTIONS TO DISCHARGE.—Section 523(a) of title 11, United States Code, as amended by section 215, is amended by inserting after paragraph (17) the following: ‘‘(18) owed to a pension, profit-sharing, stock bonus, or other plan established under section 401, 403, 408, 408A, 414, 457, or 501(c) of the Internal Revenue Code of 1986, under— ‘‘(A) a loan permitted under section 408(b)(1) of the Employee Retirement Income Security Act of 1974, or subject to section 72(p) of the Internal Revenue Code of 1986; or
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