Bill > H5645

This bill modifies Rhode Island's existing law regarding property exempt from judicial attachment by adding qualified tuition savings programs (529 plans) to the list of protected assets. Specifically, the bill inserts language that exempts account balances, rights, or interests in qualified tuition programs authorized under Section 26 U.S.C. § 529 from being seized through legal proceedings such as court judgments. A 529 plan is a tax-advantaged investment account designed to help families save for educational expenses. The exemption is similar to existing protections for other types of assets like retirement accounts, with two key exceptions: the protection does not apply to court orders related to divorce settlements or child support. The bill provides broad protection for these educational savings accounts, ensuring that funds set aside for educational purposes cannot be typically seized by creditors. The legislation will take effect immediately upon its passage, offering immediate protection for 529 plan holders in Rhode Island.

Justice

https://status.rilegislature.gov/