The IRS has issued a pre-publication version of final regulations for Achieving a Better Life Experience (ABLE) savings accounts. Congress created ABLE accounts to provide financial resources for special needs individuals. Proposed regulations were issued in 2015 and revised in 2019 to accommodate provisions of the Tax Cuts and Jobs Act (TCJA).
These final regulations take into account the ability to roll over amounts in a designated beneficiary’s 529 plan account to an ABLE account of the same beneficiary or to a family member’s ABLE account (the rollover must be completed before January 1, 2026). The regulations also address certain other permitted contributions of the designated beneficiary, as well as guidance on the recordkeeping and reporting requirements for ABLE accounts.