DeMassa

The Creditors DeMassa and the Trustee in this bankruptcy proceeding, appeal from a Judgment by the Bankruptcy Appellate Panel (BAP), affirming the bankruptcy court, holding that the Debtors’ private retirement plans are exempt from their bankruptcy estate under California law. The BAP had jurisdiction to hear the appeal pursuant to 28 U.S.C. § 158 (a) and (b)(1). We have juris *187 diction pursuant to 28 U.S.C. § 158 (d). We affirm the BAP’s judgment.

BACKGROUND

The issue before this court is a narrow one of first impression, i.e., whether the Debtors’ Internal Revenue Code Section 403(b) retirement plan annuities are fully exempt from their bankruptcy estate under California Civil Procedure (CCP) § 704.115(a)(1) and (b), or whether they are subject to the “extent neeessary for retirement” limitation of § 704.115(e).

The Debtors, Ronald Maclntrye and Mary Pikus, husband and wife, are physicians, who are employed by Sharp Rees Stealy Hospital, a nonprofit hospital. As employees of a nonprofit hospital, they are eligible for the tax advantages of section 403(b) retirement plans, provided for in the Internal Revenue Code. The Debtors contributed to their section 403(b) retirement…