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AL HB517

Bill

Status

Engrossed

5/24/2011

Primary Sponsor

Ronald Johnson

Click for details

Origin

House of Representatives

Regular Session 2011

AI Summary

  • Amends Section 19-3B-508 of the Alabama Code to add Roth IRAs (defined under Internal Revenue Code Section 408A) to the definition of "qualified trust."

  • Roth IRAs will now receive the same protections as other qualified trusts, making them exempt from assignment, alienation, bankruptcy, and insolvency laws.

  • The amendment adds Roth IRAs as subsection (viii) to the list of plans qualifying for spendthrift trust protections and creditor exemptions under federal bankruptcy law.

  • Excludes the Employees' Retirement System of Alabama, Teachers' Retirement System of Alabama, and Judicial Retirement Fund of Alabama from the provisions of this section.

  • Becomes effective immediately upon passage and approval by the Governor.

Legislative Description

Retirement accounts, Uniform Probate Code, Roth Individual Retirement Accounts, included as qualified trust for purposes of limitation on assignment and alienation, Sec. 19-3B-508 am'd.

Property, Real and Personal

Last Action

Read for the first time and referred to the Senate committee on Banking and Insurance

5/26/2011

Committee Referrals

Banking and Insurance5/26/2011
Financial Services4/14/2011

Full Bill Text

No bill text available