Sec. 24. (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.
As added by P.L.12-2016, SEC.8.
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