Adds new GS 1C-1601.5, pertaining to certain tax-advantaged accounts, as follows. Defines qualifying account as an education savings and investment plan account qualified under section 529 of the Internal Revenue Code (IRC) or an ABLE account qualified under section 529A of the IRC. Defines qualifying purpose as any purpose permitted under Section 529 of the IRC (education savings and investment plan accounts) or any purpose permitted under Section 529A of the IRC (ABLE accounts), as applicable. Directs that funds located in a qualifying account or withdrawn from the account and used for a qualifying purpose are not subject to liens, attachment, garnishment, levy, seizure, any involuntary sale or assignment by operation or execution of law, or the enforcement of any other judgment or claim to pay any debt or liability of any account owner, beneficiary, or contributor to an account, notwithstanding any other provision of law including GS 1C-1601(e) (listing certain federal claims that are not subject to the State’s property exemptions). Specifies that GS 1C-1601.5 does not prevent distribution of ABLE funds following the account owner’s death or limit enforcement of judgments or claims on funds either not used for a qualifying purpose or that were deposited into a qualifying account as a result of fraud, intentional wrongdoing or other violation of law.
Repeals GS 1C-1601(a)(10) (pertaining to limits on funds of college savings plans under Section 529 of the IRC).
Applies to actions filed on or after September 1, 2025.

Statutes affected:
Filed: 1C-1601
Edition 1: 1C-1601