SB424 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Tammy Irons
Democrat
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: SB424 adds Roth IRAs to Alabama's qualified trusts under the Uniform Probate Code, extending protections against assignment, alienation, and many creditor claims.
What This Bill Does
It amends Section 19-3B-508 to include Roth IRAs as a qualified trust. This gives Roth IRAs the same protections as other qualified trusts, meaning they cannot be assigned or seized and are exempt from bankruptcy or insolvency actions. It also clarifies related rules on loans, domestic relations orders, and creditor claims, and the act takes effect immediately after passage.

Who It Affects
Roth IRA owners and beneficiaries, whose Roth IRAs would be treated as qualified trusts with protections from assignment, alienation, and certain creditor claims.
Creditors and courts, including those handling bankruptcy or domestic relations orders, who face limitations on accessing or attaching Roth IRA benefits; ex-spouses or others seeking rights via domestic relations orders are affected unless the order is a qualified domestic relations order.

Key Provisions
Roth IRAs are included as a 'qualified trust' under Section 19-3B-508.
Qualified trusts may not be assigned or alienated and are exempt from bankruptcy/insolvency claims under 11 U.S.C. 522(b).
Loans secured by accrued benefits are not treated as assignments if they meet IRS-related exemption conditions ( Section 4975).
Domestic relations orders affecting benefits are restricted unless recognized as a 'qualified domestic relations order' under Section 414(p); otherwise, the general restrictions apply.
The definition of 'Qualified Trust' is updated to include Roth IRAs under IRC Section 408A.
The section is intended as state spendthrift trust law and provides creditor exemptions; the act becomes effective immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Property, Real and Personal