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Bill

HB 1752

TO EXEMPT CERTAIN SAVINGS PLANS FROM THE EXECUTION OF A JUDGMENT.

2025 Regular Session Introduced by Justin Boyd and 1 co-sponsor

Act 681 protects individuals' retirement and savings accounts from creditors, ensuring financial security by exempting these assets from debt collection efforts.

Notification that HB1752 is now Act 681
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WeVote Research Nonpartisan
Bill Summary · HB 1752

Summary of House Bill 1752 (Act 681)

Purpose and Intent

House Bill 1752, now known as Act 681, aims to provide legal protections for certain savings plans by exempting them from the execution of a judgment. This means that assets held in specified savings plans cannot be seized to satisfy debts, thereby safeguarding individuals' financial security in these accounts.

Key Provisions

The bill amends Arkansas Code § 16-66-220 to include the following provisions:

  1. Exemption from Attachment:

    • A person's rights to assets in pension, profit-sharing, retirement, and similar plans are exempt from attachment, execution, and seizure for debt satisfaction, provided these plans qualify under the Internal Revenue Code of 1986.
    • This exemption also applies to government and church plans unless they do not meet the federal definitions.

  2. Qualified Savings Plans:

    • The bill introduces a definition for "qualified savings plan," which includes:
      • Stock, bonus, pension, annuity, deferred compensation, profit-sharing, health, education, or similar plans that are exempt from federal income tax or defer tax until benefits are paid.
      • Specific accounts such as:
      • Inherited individual retirement accounts (IRAs)
      • Health savings accounts (HSAs)
      • Qualified tuition programs under 26 U.S.C. § 529
      • Qualified programs under 26 U.S.C. § 529A
      • Coverdell education savings accounts under 26 U.S.C. § 530

  3. Limitations:

    • Contributions to individual retirement accounts that exceed deductible amounts are not exempt unless specified by law. However, this limitation does not apply to IRAs qualifying under § 408(A) of the Internal Revenue Code.

Affected Parties

The bill primarily affects individuals who hold assets in various retirement and savings plans, including:
- Employees with pension or profit-sharing plans
- Self-employed individuals with retirement accounts
- Individuals with health savings accounts or education savings accounts

By protecting these assets from creditors, the bill aims to enhance financial stability for individuals facing potential debt collection.

Legislative Timeline

  • Introduced: March 12, 2025
  • Passed by House: April 1, 2025
  • Passed by Senate: April 10, 2025
  • Enrolled and Transmitted to Governor: April 10, 2025
  • Notification of Act 681: April 16, 2025

Conclusion

House Bill 1752 (Act 681) represents a significant legislative effort to protect individuals' savings and retirement assets from creditors. By clarifying the exemptions for various savings plans, the bill aims to provide greater financial security for Arkansas residents.

Compiled from official sources — confirm details with the bill’s official record.

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