627.6 GENERAL EXEMPTIONS.
A debtor who is a resident of this state may hold exempt from
execution the following property:
1. The debtor's interest in:
a. Any wedding or engagement ring owned or received by the
debtor or the debtor's dependents. However, any interest acquired in
one or more wedding or engagement rings owned or received by the
debtor or the debtor's dependents after the date of marriage and
within two years of the date the execution is issued or an exemption
is claimed shall not exceed a value equal to seven thousand dollars
in the aggregate minus the amount claimed by the debtor for any other
jewelry claimed in paragraph "b".
b. All jewelry of the debtor and the debtor's dependents
owned or received by the debtor or the debtor's dependents, not to
exceed in value two thousand dollars in the aggregate.
2. One shotgun, and either one rifle or one musket.
3. Private libraries, family bibles, portraits, pictures and
paintings not to exceed in value one thousand dollars in the
aggregate.
4. An interment space or an interest in a public or private
burying ground, not exceeding one acre for any defendant.
5. The debtor's interest in all wearing apparel of the debtor and
the debtor's dependents kept for actual use and the trunks or other
receptacles necessary for the wearing apparel, musical instruments,
household furnishings, and household goods which include, but are not
limited to, appliances, radios, television sets, record or tape
playing machines, compact disc players, satellite dishes, cable
television equipment, computers, software, printers, digital video
disc players, video players, and cameras held primarily for the
personal, family, or household use of the debtor and the debtor's
dependents, not to exceed in value seven thousand dollars in the
aggregate.
6. The interest of an individual in any accrued dividend or
interest, loan or cash surrender value of, or any other interest in a
life insurance policy owned by the individual if the beneficiary of
the policy is the individual's spouse, child, or dependent. However,
the amount of the exemption shall not exceed ten thousand dollars in
the aggregate of any interest or value in insurance acquired within
two years of the date execution is issued or exemptions are claimed,
or for additions within the same time period to a prior existing
policy which additions are in excess of the amount necessary to fund
the amount of face value coverage of the policies for the two-year
period. For purposes of this paragraph, acquisitions shall not
include such interest in new policies used to replace prior policies
to the extent of any accrued dividend or interest, loan or cash
surrender value of, or any other interest in the prior policies at
the time of their cancellation.
In the absence of a written agreement or assignment to the
contrary, upon the death of the insured any benefit payable to the
spouse, child, or dependent of the individual under a life insurance
policy shall inure to the separate use of the beneficiary
independently of the insured's creditors.
A benefit or indemnity paid under an accident, health, or
disability insurance policy is exempt to the insured or in case of
the insured's death to the spouse, child, or dependent of the
insured, from the insured's debts.
In case of an insured's death the avails of all matured policies
of life, accident, health, or disability insurance payable to the
surviving spouse, child, or dependent are exempt from liability for
all debts of the beneficiary contracted prior to death of the
insured, but the amount thus exempted shall not exceed fifteen
thousand dollars in the aggregate.
7. Professionally prescribed health aids for the debtor or a
dependent of the debtor.
8. The debtor's rights in:
a. A social security benefit, unemployment compensation, or
any public assistance benefit.
b. A veteran's benefit.
c. A disability or illness benefit.
d. Alimony, support, or separate maintenance, to the extent
reasonably necessary for the support of the debtor and dependents of
the debtor.
e. A payment or a portion of a payment under a pension,
annuity, or similar plan or contract on account of illness,
disability, death, age, or length of service, unless the payment or a
portion of the payment results from contributions to the plan or
contract by the debtor within one year prior to the filing of a
bankruptcy petition, which contributions are above the normal and
customary contributions under the plan or contract, in which case the
portion of the payment attributable to the contributions above the
normal and customary rate is not exempt.
f. Contributions and assets, including the accumulated
earnings and market increases in value, in any of the plans or
contracts as follows:
(1) All transfers, in any amount, from a trust forming part of a
stock, bonus, pension, or profit-sharing plan of an employer defined
in section 401(a) of the Internal Revenue Code and of which the trust
assets are exempt from taxation under section 501(a) of the Internal
Revenue Code and covered by the Employee Retirement Income Security
Act of 1974 (ERISA), as codified at 29 U.S.C. § 1001 et seq., to
either of the following:
(a) A succeeding trust authorized under federal law on or after
April 25, 2001.
(b) An individual retirement account or individual retirement
annuity established under section 408(d)(3) of the Internal Revenue
Code, from which the total value, including accumulated earnings and
market increases in value, may be contributed to a succeeding trust
authorized under federal law on or after April 25, 2001. For
purposes of this subparagraph, transfers, in any amount, from an
individual retirement account or individual retirement annuity
established under section 408(d)(3) of the Internal Revenue Code to
an individual retirement account or individual retirement annuity
established under section 408(d)(3) of the Internal Revenue Code, or
an individual retirement account established under section 408(a) of
the Internal Revenue Code, or an individual retirement annuity
established under section 408(b) of the Internal Revenue Code, or a
Roth individual retirement account, or a Roth individual retirement
annuity established under section 408A of the Internal Revenue Code
are exempt.
(2) All transfers, in any amount, from an eligible retirement
plan to an individual retirement account, an individual retirement
annuity, a Roth individual retirement account, or a Roth individual
retirement annuity established under section 408A of the Internal
Revenue Code shall be exempt from execution and from the claims of
creditors.
As used in this subparagraph, "eligible retirement plan" means
the funds or assets in any retirement plan established under state or
federal law that meet all of the following requirements:
(a) Can be transferred to an individual retirement account or
individual retirement annuity established under sections 408(a) and
408(b) of the Internal Revenue Code or Roth individual retirement
accounts and Roth individual retirement annuities established under
section 408A of the Internal Revenue Code.
(b) Are either exempt from execution under state or federal law
or are excluded from a bankruptcy estate under 11 U.S.C. § 541(c)(2)
et seq.
(3) Retirement plans established pursuant to qualified domestic
relations orders, as defined in 26 U.S.C. § 414. However, nothing in
this section shall be construed as making any retirement plan exempt
from the claims of the beneficiary of a qualified domestic relations
order or from claims for child support or alimony.
(4) For simplified employee pension plans, self-employed pension
plans (also known as Keogh plans or H.R. 10 plans), individual
retirement accounts established under section 408(a) of the Internal
Revenue Code, individual retirement annuities established under
section 408(b) of the Internal Revenue Code, savings incentive
matched plans for employees, salary reduction simplified employee
pension plans (also known as SARSEPs), and similar plans for
retirement investments authorized in the future under federal law,
the exemption for contributions shall not exceed, for each tax year
of contributions, the actual amount of the contribution deducted on
the debtor's tax return or the maximum amount which could be
contributed to an individual retirement account established under
section 408(a) of the Internal Revenue Code and deducted in the tax
year of the contribution, whichever is less. The exemption for
accumulated earnings and market increases in value of plans under
this subparagraph shall be limited to an amount determined by
multiplying all the accumulated earnings and market increases in
value by a fraction, the numerator of which is the total amount of
exempt contributions as determined by this subparagraph, and the
denominator of which is the total of exempt and nonexempt
contributions to the plan.
(5) For Roth individual retirement accounts and Roth individual
retirement annuities established under section 408A of the Internal
Revenue Code and similar plans for retirement investments authorized
in the future under federal law, the exemption for contributions
shall not exceed, for each tax year of contributions, the actual
amount of the contribution or the maximum amount which federal law
allows to be contributed to such plans. The exemption for
accumulated earnings and market increases in value of plans under
this subparagraph shall be limited to an amount determined by
multiplying all of the accumulated earnings and market increases in
value by a fraction, the numerator of which is the total amount of
exempt contributions as determined by this subparagraph, and the
denominator of which is the total of exempt and nonexempt
contributions to the plan.
(6) For all contributions to plans described in subparagraphs (4)
and (5), the maximum contribution in each of the two tax years
preceding the claim of exemption or filing of a bankruptcy shall be
limited to the maximum deductible contribution to an individual
retirement account established under section 408(a) of the Internal
Revenue Code, regardless of which plan for retirement investment has
been chosen by the debtor.
(7) Exempt assets transferred from any individual retirement
account, individual retirement annuity, Roth individual retirement
account, or Roth individual retirement annuity to any other
individual retirement account, individual retirement annuity, Roth
individual retirement annuity, or Roth individual retirement account
established under section 408A of the Internal Revenue Code shall
continue to be exempt regardless of the number of times transferred
between individual retirement accounts, individual retirement
annuities, Roth individual retirement annuities, or Roth individual
retirement accounts.
For purposes of this paragraph "f", "market increases in
value" shall include, but shall not be limited to, dividends, stock
splits, interest, and appreciation. "Contributions" means
contributions by the debtor and by the debtor's employer.
9. The debtor's interest in one motor vehicle, not to exceed in
value seven thousand dollars.
10. In the event of a bankruptcy proceeding, the debtor's
interest in accrued wages and in state and federal tax refunds as of
the date of filing of the petition in bankruptcy, not to exceed one
thousand dollars in the aggregate. This exemption is in addition to
the limitations contained in sections 642.21 and 537.5105.
11. If the debtor is engaged in any profession or occupation
other than farming, the proper implements, professional books, or
tools of the trade of the debtor or a dependent of the debtor, not to
exceed in value ten thousand dollars in the aggregate.
12. If the debtor is engaged in farming and does not exercise the
delay of the enforceability of a deficiency judgment or general
execution under section 654.6 in relation to the execution under
which the exemption is claimed, any combination of the following, not
to exceed a value of ten thousand dollars in the aggregate:
a. Implements and equipment reasonably related to a normal
farming operation. This exemption is in addition to a motor vehicle
held exempt under subsection 9.
b. Livestock and feed for the livestock reasonably related to
a normal farming operation.
13. If the debtor is engaged in farming the agricultural land
upon the commencement of an action for the foreclosure of a mortgage
on the agricultural land or for the enforcement of an obligation
secured by a mortgage on the agricultural land, if a deficiency
judgment is issued against the debtor, and if the debtor does not
exercise the delay of the enforceability of the deficiency judgment
or general execution under section 654.6 in relation to the execution
under which the exemption is claimed, the disposable earnings of the
debtor are exempt from garnishment to enforce the deficiency judgment
after two years from the entry of the deficiency judgment, sections
642.21 and 642.22 notwithstanding. However, earnings paid to the
debtor directly or indirectly by the debtor are not exempt.
14. The debtor's interest, not to exceed one thousand dollars in
the aggregate, in any cash on hand, bank deposits, credit union share
drafts, or other deposits, wherever situated, or other personal
property not otherwise specifically provided for in this chapter.
15. The debtor's interest, not to exceed five hundred dollars in
the aggregate, in any combination of the following property:
a. Any residential rental deposit held by a landlord as a
security deposit, as well as any interest earned on such deposit as a
result of any statute or rule requiring that such deposit be placed
in an interest-bearing account.
b. Any residential utility deposit held by any electric, gas,
telephone, or water company as a condition for initiation or
reinstatement of such utility service, as well as any interest earned
on such deposit as a result of any statute or rule requiring that
such deposit be placed in an interest-bearing account.
c. Any rent paid to the landlord in advance of the date due
under any unexpired residential lease.
Notwithstanding the provisions of this subsection, a debtor shall
not be permitted to claim these exemptions against a landlord or
utility company, with regard to sums held under the terms of a rental
agreement, or for utility services furnished to the debtor.
16. The debtor's interest in payments reasonably necessary for
the support of the debtor or the debtor's dependents to or for the
benefit of the debtor or the debtor's dependents, including
structured settlements, resulting from personal injury to the debtor
or the debtor's dependents or the wrongful death of a decedent upon
which the debtor or the debtor's dependents were dependent. Section History: Early Form
[C51, § 1898, 1899; R60, § 3304, 3305, 3308; C73, § 3072; C97, §
4008; C24, 27, 31, 35, 39, § 11760; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 627.6; 81 Acts, ch 182, § 3] Section History: Recent Form
86 Acts, ch 1216, § 4--6; 88 Acts, ch 1255, § 3--7; 92 Acts, ch
1061, § 1, 2; 96 Acts, ch 1136, § 1; 99 Acts, ch 131, §1--3; 2001
Acts, ch 80, §1--4; 2001 Acts, ch 176, §77; 2006 Acts, ch 1086, §1,
2; 2007 Acts, ch 114, §1; 2007 Acts, ch 126, §104
Referred to in § 627.6A
Exemptions denied, § 123.113
Judgment for exempt property, § 643.22