AL SB337

Amends Section 19-3B-508 of the Alabama Code to expand the definition of "qualified trust" to include trusts formed as part of qualified pension plans, qualified stock bonus plans, and qualified profit sharing plans.

Expands "qualified trust" definition to encompass retirement annuities, IRAs (including Roth IRAs), SEP plans, SIMPLE IRAs, governmental plans, church plans, health savings accounts, and ESOPs, along with other plans meeting Internal Revenue Code requirements.

Provides that benefits from qualified trusts cannot be assigned or alienated and are exempt from federal bankruptcy and insolvency laws under 11 U.S.C. § 522(b), with specified exceptions for qualified domestic relations orders and criminal restitution orders.

Permits loan securing against a participant's accrued benefit and protects distributed funds from qualified trusts for 60 days after distribution if they constitute a qualified rollover contribution.

Becomes effective on the first day of the third month following passage and approval by the Governor.