NEW PROPOSED REGULATIONS FOR “ABLE” ACCOUNTS

IRS recently issued proposed regs which implement a new Federal law authorizing states to offer tax efficient “ABLE” accounts to folks with disabilities who became disabled before age 26.

The Achieving a Better Life Experience (ABLE) account provision was designed to enable people with disabilities and their families to save for and pay for disability-related expenses.

Contributions in a total amount up the annual gift tax exclusion can be deposited to an ABLE account annually, and distributions are tax free if used to pay qualified disability expenses.

Check out IRC Section 529A for the details.