IRS Releases Notice on ABLE Act

On March 10, the Internal Revenue Service (IRS) released a notice to provide advance notification for section 529A of the Internal Revenue Code regarding the creation of accounts under the ABLE Act. Concerned that the lack of regulations surrounding these tax-exempt accounts may slow down or hinder enabling legislation, the IRS clarified that individuals that have accounts before the final rules are written will not lose benefits if not fully in compliance. 

---

As published within the notice:
 

The ABLE Act creates a new section 529A of the Internal Revenue Code (Code) that permits a state (or a state agency or instrumentality) to establish and maintain a new type of taxadvantaged savings program, a qualified ABLE program, under which contributions may be made to an account (an ABLE account) that is established for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account who is a resident of that state and who is disabled (as defined in section 529A).

 
The ABLE Act was signed into law in January of this year by President Obama. This is one more step in the right direction to ensure people with disabilities have access, options, and choice within the community.