The IRS today released an advance version of Notice 2018-62 stating that the U.S. Treasury Department and IRS intend to issue proposed regulations to clarify the contribution limits provided in section 529A(b)(2) with respect to “achieving a better life experience” (ABLE) accounts.
ABLE accounts are designed to allow disabled individuals and their families to save and pay for disability-related expenses. The contribution limits for ABLE accounts and other provisions of section 529A were modified by the new tax law (Pub. L. No. 115-97, enacted December 22, 2017).
Notice 2018-62 [PDF 66 KB] announces that the to-be-issued proposed regulations will aim to clarify measures in the new tax law that increase the contribution limits to ABLE accounts from certain designated beneficiaries.
A related IRS transmittal message explains that Notice 2018-62:
Before the future proposed regulations are issued, Notice 2018-62 states that taxpayers, beneficiaries, and administrators of ABLE programs may rely on this notice. Comments are requested on the issues addressed Notice 2018-62; the due date for comments is November 1, 2018.
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