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KY: Funds Deposited in Health Savings Accounts Are Exempt from Wage Attachments or Garnishments
posted: Tuesday, April 18th
Law to Take Effect June 29, 2017
A new law in Kentucky exempts funds deposited in a health savings account from execution, attachment, or garnishment.
Background
Under current Kentucky law, certain personal property of an individual debtor resident is exempt, either up to a specified dollar amount or in the entire amount, from execution, attachment, or garnishment. Kentucky law also limits the amount of the aggregate disposable earnings of an individual that may be subject to garnishment. Kentucky law (section: 427.010(2)) for further details.
Exemption of Funds in Health Savings Accounts
Under the new law, an individual debtor resident's personal property in the form of funds deposited in a health savings account (as described under the Internal Revenue Code), are exempt from execution, attachment, or garnishment.
The law will take effect on June 29, 2017. Click here to read the text of the new law. Additional information regarding health savings accounts is available from the IRS.