{"data":{"id":"us-ky/krs-164a.260","jurisdiction":"us-ky","citation":"KRS 164A.260","heading":"STABLE Kentucky account.","body":"(1) As used in this section, \"STABLE Kentucky account\" means an account established\nby or for the benefit of an eligible individual, as that term is defined by 26 U.S.C.\nsec. 529A, and established and maintained by the Commonwealth of Kentucky or\npursuant to any agreement between the Commonwealth and any other state.\n(2) A STABLE Kentucky account and any investment income earned on a STABLE\nKentucky account shall be exempt from all taxation by the Commonwealth of\nKentucky or any of its political subdivisions.\n(3) Moneys in a STABLE Kentucky account or a qualified withdrawal from a STABLE\nKentucky account shall:\n(a) Be exempt from attachment, execution, or garnishment;\n(b) Be disregarded for the purposes of determining eligibility for or the amount of\nany public assistance program, unless required by federal law;\n(c) Not be subject to claims by the Cabinet for Health and Family Services,\nunless required by federal law; and\n(d) Be, on the death of the designated beneficiary, transferred to the estate of the\ndesignated beneficiary, unless prohibited by federal law.\n(4) (a) Distributions from a STABLE Kentucky account shall not be subject to\nKentucky income tax if the distributions are for qualified disability expenses\nas defined by 26 U.S.C. sec. 529A.\n(b) A rollover of funds from one (1) STABLE Kentucky account to another\nSTABLE Kentucky account or to an account established under 26 U.S.C. sec.\n529 shall not be treated as a distribution so long as:\n1. The funds are being transferred into an account for:\na. The same eligible individual; or\nb. An eligible individual who is a member of the same household;\nand\n2. The amount is paid into the new account within sixty (60) days of being\nremoved from the original account.\n(c) Any change in the designated beneficiary  of a STABLE Kentucky account\nshall not be treated as a distribution for purposes of taxation so long as the\nnew beneficiary is a member of the same household.","path":["KRS Chapter 164A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54088","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:19Z","sha256":"c6ce81a0067ef22de68edc71194ba0378f510607bf321520a06d918844643af5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164a.250","next":"us-ky/krs-164a.300"},"notice":"GroundRules: Original legal text. Not legal advice."}