§ 12-11-14-24 — Taxation exemption; property of account owner; funds in ABLE account

(a) All ABLE accounts and all earnings or
interest on ABLE accounts are exempt from taxation in Indiana to the
extent that those accounts, earnings, and interest are exempt from
federal taxation under the Internal Revenue Code, subject to any
penalties that are established for a qualified ABLE program under this
chapter.
(b) Money deposited in an ABLE account by the account owner or
a contributor and investment returns on an account are the property of
the account owner.
(c) Funds held in an ABLE account that may be established under
this chapter may not be used by an account owner or account
beneficiary as security for a loan.
(d) Funds held in an ABLE account:
(1) are exempt from creditors and are not liable to attachment,
levy, garnishment, or other process; and
(2) may not be seized, taken, appropriated, or applied by any legal
or equitable process or operation of law to pay any debt or
liability of any contributor or beneficiary.
However, the state of residency of the designated beneficiary of an
ABLE account is a creditor of the account in the event of the death of
the designated beneficiary.
(e) Funds held in an ABLE account may not be included in
determining income eligibility of the designated beneficiary for state
and local assistance programs.

Legislative History

As added by P.L.12-2016, SEC.8.