ABLE Act Update
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:
|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