(a) In this section— (1)  “dependent” includes spouse, whether or not actually dependent; and

  

 (2)  “value” means fair market value  as of the date of the filing of the petition or, with respect to  property that becomes property of the estate after such date, as of the  date such property becomes property of the estate.

 

(b) (1)  Notwithstanding section 541 of this title,  an individual debtor may exempt from property of the estate the  property listed in either paragraph (2) or, in the alternative,  paragraph (3) of this subsection. In joint cases filed under section 302 of this title  and individual cases filed under section 301 or 303 of this title by or  against debtors who are husband and wife, and whose estates are ordered  to be jointly administered under Rule 1015(b) of the Federal Rules of  Bankruptcy Procedure, one debtor may not elect to exempt property listed  in paragraph (2) and the other debtor elect to exempt property listed  in paragraph (3) of this subsection. If the parties cannot agree on the  alternative to be elected, they shall be deemed to elect paragraph (2),  where such election is permitted under the law of the jurisdiction where  the case is filed.

  

(2)  Property listed in this paragraph is property that  is specified under subsection (d), unless the State law that is  applicable to the debtor under paragraph (3)(A) specifically does not so  authorize.

 

(3) Property listed in this paragraph is— (A)  subject to subsections (o) and (p),  any property that is exempt under Federal law, other than subsection (d)  of this section, or State or local law that is applicable on the date  of the filing of the petition to the place in which the debtor’s  domicile has been located for the 730 days immediately preceding the  date of the filing of the petition or if the debtor’s domicile has not  been located in a single State for such 730-day period, the place in  which the debtor’s domicile was located for 180 days immediately  preceding the 730-day period or for a longer portion of such 180-day  period than in any other place;

  

(B)  any interest in property in which the debtor had,  immediately before the commencement of the case, an interest as a tenant  by the entirety or joint tenant to the extent that such interest as a  tenant by the entirety or joint tenant is exempt from process under  applicable nonbankruptcy law; and

 

(C)  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.

  If the effect of the  domiciliary requirement under subparagraph (A) is to render the debtor  ineligible for any exemption, the debtor may elect to exempt property  that is specified under subsection (d).

 

(4) For purposes of paragraph (3)(C) and subsection (d)(12), the following shall apply: (A)  If the retirement funds are in a retirement fund that has received a favorable determination under section 7805 of the Internal Revenue Code of 1986,  and that determination is in effect as of the date of the filing of the  petition in a case under this title, those funds shall be presumed to  be exempt from the estate.

  

(B)  If the retirement funds are in a retirement fund that has not received a  favorable determination under such section 7805, those funds are exempt  from the estate if the debtor demonstrates that— (i)  no prior determination to the contrary has been made by a court or the Internal Revenue Service; and

 

(ii) (I)  the retirement fund is in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986; or

 

(II)  the retirement fund fails to be in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986 and the debtor is not materially responsible for that failure.

  

(C)  A direct transfer of retirement funds from 1 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, under section 401(a)(31) of the Internal Revenue Code of 1986,  or otherwise, shall not cease to qualify for exemption under paragraph  (3)(C) or subsection (d)(12) by reason of such direct transfer.

 

(D) (i)  Any distribution that qualifies as an eligible rollover distribution within the meaning of section 402(c) of the Internal Revenue Code of 1986  or that is described in clause (ii) shall 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.