PUBLIC LAW 109–8—APR. 20, 2005
119 STAT. 65
‘‘(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; or’’. (d) PLAN CONTENTS.—Section 1322 of title 11, United States Code, is amended by adding at the end the following: ‘‘(f) A plan may not materially alter the terms of a loan described in section 362(b)(19) and any amounts required to repay such loan shall not constitute ‘disposable income’ under section 1325.’’. (e) ASSET LIMITATION.— (1) LIMITATION.—Section 522 of title 11, United States Code, is amended by adding at the end the following: ‘‘(n) For assets in individual retirement accounts described in section 408 or 408A of the Internal Revenue Code of 1986, other than a simplified employee pension under section 408(k) of such Code or a simple retirement account under section 408(p) of such Code, the aggregate value of such assets exempted under this section, without regard to amounts attributable to rollover contributions under section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal Revenue Code of 1986, and earnings thereon, shall not exceed $1,000,000 in a case filed by a debtor who is an individual, except that such amount may be increased if the interests of justice so require.’’. (2) ADJUSTMENT OF DOLLAR AMOUNTS.—Paragraphs (1) and (2) of section 104(b) of title 11, United States Code, are amended by inserting ‘‘522(n),’’ after ‘‘522(d),’’. SEC. 225. PROTECTION OF EDUCATION SAVINGS IN BANKRUPTCY.
(a) EXCLUSIONS.—Section 541 of title 11, United States Code, is amended— (1) in subsection (b)— (A) in paragraph (4), by striking ‘‘or’’ at the end; (B) by redesignating paragraph (5) as paragraph (9); and (C) by inserting after paragraph (4) the following: ‘‘(5) funds placed in an education individual retirement account (as defined in section 530(b)(1) of the Internal Revenue Code of 1986) not later than 365 days before the date of the filing of the petition in a case under this title, but— ‘‘(A) only if the designated beneficiary of such account was a child, stepchild, grandchild, or stepgrandchild of the debtor for the taxable year for which funds were placed in such account; ‘‘(B) only to the extent that such funds— ‘‘(i) are not pledged or promised to any entity in connection with any extension of credit; and ‘‘(ii) are not excess contributions (as described in section 4973(e) of the Internal Revenue Code of 1986); and ‘‘(C) in the case of funds placed in all such accounts having the same designated beneficiary not earlier than
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