HB517 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2011
Title: 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.
Summary: HB517 adds Roth IRAs to Alabama's qualified trusts, giving Roth IRA assets non-assignable and bankruptcy-exempt protections under the Uniform Probate Code.
What This Bill Does
The bill amends Section 19-3B-508 to include Roth IRAs as qualified trusts. This means Roth IRA assets held in such trusts cannot be assigned or seized by creditors and are exempt from bankruptcy proceedings. It updates the definition of qualified trust to include Roth IRAs under IRC Section 408A, and notes that this section does not apply to three specific Alabama state retirement systems.

Who It Affects
Roth IRA owners in Alabama, who would gain creditor and bankruptcy protection for Roth IRA assets held in a qualified trust
Creditors and bankruptcy trustees, who would be limited in claiming or seizing Roth IRA assets within these qualified trusts

Key Provisions
Adds Roth IRA to the definition of 'qualified trust' under Section 19-3B-508, making Roth IRA assets non-assignable and exempt from bankruptcy
Defines 'QUALIFIED TRUST' to include Roth IRAs under IRC Section 408A, aligning state law with federal tax rules
Specifies that the act does not apply to the Employees' Retirement System of Alabama, Teachers' Retirement System of Alabama, and the Judicial Retirement Fund of Alabama
Effective immediately after governor's signature

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property, Real and Personal