August 24, 2019

Colorado Supreme Court: Health Savings Account Not Retirement Account for Garnishment Exemption Purposes

The Colorado Supreme Court issued its opinion in Roup v. Commercial Research, LLC on Monday, June 1, 2015.

Health Savings Account—Statutory Exemptions From Garnishment—CRS § 13-54-102(1)(s).

In this decision, the Supreme Court held that a Health Savings Account (HSA) is not a “retirement plan” within the meaning of Colorado’s exemption statute. An HSA is not intended to replace income lost as a result of retirement; it is intended to cover medical costs incurred at any point during a person’s lifetime. The General Assembly has not chosen to provide an exemption for HSAs in the relevant statutes. Accordingly, the Court affirmed the judgment of the court of appeals.

Summary and full case available here, courtesy of The Colorado Lawyer.

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