ABLE After the 2017 Tax Act

The proposed regs also require an ABLE program to provide that no contributions to an ABLE account will be accepted to the extent that the contribution, when added to all other contributions (whether by the designated beneficiary or any other persons) to that ABLE account during the taxable year, ca...

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Bibliographic Details
Published in:Trusts & Estates 2018-04, p.17
Main Author: James WC Canup
Format: Article
Language:English
Subjects:
Beneficiaries
Certification
Disability
Exclusion
Gift taxes
Gross income
Internal Revenue Code
Provisions
Qualified tuition programs
Tax legislation
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Summary:The proposed regs also require an ABLE program to provide that no contributions to an ABLE account will be accepted to the extent that the contribution, when added to all other contributions (whether by the designated beneficiary or any other persons) to that ABLE account during the taxable year, causes the total contribution to exceed the applicable annual gift tax exclusion amount (under IRC Section 2503).The Act permits a designated beneficiary to claim the saver's credit for contributions made to an ABLE account.[...]eligible individuals who qualify for the saver's credit will be able to both make contributions to their ABLE account and reap the benefit of the saver's credit.[...]rollovers out of a 529 plan to an ABLE plan weren't permitted (and vice versa).Because 529 plans were established 20 years earlier than ABLE plans, some 529 plan account owners with beneficiaries who qualify as eligible individuals for purposes of ABLE have wanted to rollover their 529 account funds to ABLE accounts.The ABLE statute and these new revisions to ABLE provided by the Act are significant because they permit eligible individuals to save more to help themselves.[...]the Act improvements allow eligible individuals who qualify for the credit to take advantage of the saver's credit for contributions made to their ABLE account.
ISSN:0041-3682