An earlier post gave a brief summary of the Achieving a Better Life Experience Act of 2014 or the ABLE Act. Three different pieces of legislation were introduced on March 17, 2016 that would change some of the provisions of the ABLE Act. Below is a brief summary of each proposed change.
- Current law limits eligibility for the creation of an ABLE account to individuals with disabilities where the disability occurred before turning 26 years old. H.R. 4813 would increase that age from 26 to 46.
- H.R. 4794 would allow for rollovers between 529 accounts and ABLE accounts.
- Finally, H.R. 4795 would permit individuals with disabilities to save additional monies to an ABLE account above the annual maximum ($14,000.00) now in place. Such additional contributions would be allowed for those individuals with disabilities who work and earn income. The additional contribution would equal the lesser of (a) his or her “compensation…for the taxable year” or (b) “an amount equal to the poverty line for a one-person household, as determined for the calendar year preceding the calendar year in which the taxable year begins.”
Updates will be posted as the legislation moves forward. #specialneeds #ABLEact #estateplanning #proposedlegislation