IR-2015-130: New IRS Guidance to Simplify ABLE Program Administration
Internal Revenue Service (IRS) sent this bulletin at 11/20/2015 11:02 AM EST
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Issue Number: IR-2015-130Inside This IssueNew IRS Guidance to Simplify ABLE Program Administration WASHINGTON — The Internal Revenue Service today announced three changes to the proposed rules for new tax-favored Achieving a Better Life Experience (ABLE) accounts for eligible disabled individuals that will be included in the final regulations when issued. These changes will make it easier for states to offer and administer ABLE programs. States, program administrators and other interested commenters identified the three areas for change this summer during a 90-day comment period and at an Oct. 14 public hearing on the proposed implementation regulations. The new law, enacted last December, authorizes states to offer specially designed ABLE accounts to people who become disabled before age 26. Notice 2015-81, posted today on IRS.gov, fully describes these changes. They include:
Until the final regulations are issued, taxpayers may rely on the guidance in Notice 2015-81. More information on ABLE accounts, including the proposed regulations issued in June, can be found at www/irs.gov/Tax Benefit for Disability: IRC Section 529A. Recognizing the special financial burdens faced by families raising children with disabilities, ABLE accounts are designed to enable people with disabilities and their families to save for and pay for disability-related expenses. Contributions totaling up to the annual gift tax exclusion amount, currently $14,000, may be made to an ABLE account each year (subject to a cumulative limit), and distributions, including earnings, are tax-free to the designated beneficiary if used to pay qualified disability expenses. These expenses can include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services and other disability-related expenses. Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. |