Abraham Sanchez

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Case 05-48721 Doc54 Filed 02/15/06 Entered 02/15/06 10:15:39 Desc Main
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UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS

In re Chapter 7
ABRAHAM SANCHEZ, ; CASE NO. 05-48721-JBR
DEBTOR

ORDER ON TRUSTEE’S OBJECTION TO EXEMPTION
This matter came before the Court for hearing on the Trustee’s Objection to the
Debtor’s exemption, under M.G.L. chapter 235, § 34A, of a funds deposited in a tuition
Savings plan established pursuant to 26 U.S.C. § 529 (the “Section 529 Account’).
Because this case was commenced prior to October 17, 2005, the Section 529 Plan is
property of the estate.’ M.G.L. chapter 235, § 34A permits exemption of

an annuity, pension, profit sharing, or other retirement plan
subject to the federal Employee Retirement Income Security
Act of 1974, in any plan maintained by one or more self-
employed individuals, by [such] as a Keogh Plan, in any plan
maintained by a corporation or other business organization
pursuant to Section 401(a) of the Internal Revenue Code but
not subject to the federal Employee Retirement Income
Security Act of 1974, or in any Simplified Employee Plan,
annuity plan to which the provisions of Section 403(b) of the
Internal Revenue Code apply or Individual Retirement
Account or Annuity maintained by an individual, or in any
similar contract distributed from or purchased with assets
distributed from the foregoing...

The statute is designed to protect “three categories of retirement vehicles for protection,

which are essentially: (1) retirement plans maintained in accordance with ERISA; (2)

'There is no basis for determining that funds deposited into a Section 529 Plan
are excluded from property of the estate prior to the recent amendments to the
Bankruptcy Code. Section 541(b)(6), which excludes Section 529 plans from property
of the estate if certain conditions are met, was added to the Bankruptcy Code for all
cases filed on or after October 17, 2005 by the Bankruptcy Abuse Prevention and
Consumer Protection Act of 2005". Pub. L. 109-8, 119 Stat 23 § 1212.

Eman

U.S. GOVERNMENT
INFORMATION
GPO

Case 05-48721 Doc54 Filed 02/15/06 Entered 02/15/06 10:15:39 Desc Main
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annuities or similar contracts purchased with assets rolled over from such an ERISA
plan; and (3) individually maintained plans, including IRA's.” /n re Goldman, 192 B.R. 1,
6 (D. Mass. 1996). Because a Section 529 Plan is not within the exemption afforded by
Massachusetts law, the Debtor's claim of exemption must fail and the Trustee’s

Objection is SUSTAINED.

Dated: February 14, 2006 &, 1

/3 el B. Rosenthal
nited States Bankruptcy Judge

U.