§ 9.4.4 Retirement Plan Assets. Arizona exempts a beneficiary’s interest in any amounts held in an ERISA-qualified plan. A.R.S. § 33-1126(b) (1990) . There are two limits. The exemption does not apply to interests of a person entitled to support under a qualified domestic relations order. Nor does it apply to contributions in the 120 days before bankruptcy.
Courts have held that Arizona’s exemption statute is preempted by ERISA. In re Flindall, 105 B.R. 32, 35 (Bankr. D. Ariz. 1989) (Mooreman, J.) , aff’d in part, vacated in part, remanded in part sub nom. Pitrat v. Garlikov, 992 F.2d 224 (9th Cir. 1993) ; In re Hirsch, 98 B.R. 1 (Bankr. D. Ariz. 1988) (Mooreman, J.) , aff’d sub nom. In re Siegel, 105 B.R. 556 (D. Ariz. 1989) (Carroll, J.) . The reason is because ERISA preempts state law that has an effect upon ERISA plans, even when...
