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ABLE Act

Photo credit: NDSS

The Senate Finance Committee has announced that it had reached a bipartisan agreement to move the ABLE Act, allowing the creation of tax-exempt savings accounts for people with disabilities. Congress is expected to move forward on the bill after it returns from the November mid-term elections. Thanks to the Collaboration to Promote Self-Determination (CPSD) for developing the following article and the table below about the recent changes to the ABLE Act:

 

Read the full article, and access a downloadable PDF, here.

 

Original Bill

Chairman’s Amendment

ABLE accounts can be established by qualified individuals regardless of age Qualified individuals are restricted to individuals whose blindness or disability occurred before the age of 26
Rollovers are allowed from one ABLE account to another to any qualified family member who is an eligible individual Rollovers from one ABLE account are limited to another to a “family member” as defined in IRS code 152(d)(2)(B).
No specific limit on the amount of dollar contributions to an account An ABLE account cannot receive contributions exceeding the annual gift-tax exemption amount (For 2014, this amount is $14,000).
A designated beneficiary can hold more than one ABLE account There is a limit of one ABLE account per eligible individual