Final regulations: Guidance concerning ABLE accounts (text of final regulations)
Guidance concerning ABLE accounts
The IRS today posted on its website a version of final regulations (T.D. 9923) concerning tax-advantaged savings programs under which contributions may be made to an “achieving a better life experience” (ABLE) account for the purpose of paying for the qualified disability expenses of the designated beneficiary of the account.
Read the version of the final regulations [PDF 612 KB] (174 pages) provided by the IRS today.
Section 529A was added to the Code in December 2014, as an effort to address the special financial burdens borne by families raising children with disabilities and the fact that increased financial needs generally continue throughout the lifetime of an individual with a disability.
In June 2015, regulations under section 529A were proposed. Subsequently, measures under section 529A were amended by legislation—more recently, the contribution limits for ABLE accounts and other provisions of section 529A were modified by the 2017 U.S. tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).
To address the TCJA modifications to section 529A, Notice 2018-62 (August 2018) announced the intent of Treasury and the IRS to issue proposed regulations to implement these changes, and described the anticipated rules to implement the statutory changes. The Treasury and IRS in October 2019 released those proposed regulations. Read TaxNewsFlash
The final regulations released by the IRS today indicate that over 200 comments were submitted in response to the proposed regulations. The version of the final regulations released today by the IRS includes the following statement:
This document is in the process of being submitted to the Office of the Federal Register (OFR) for publication and will be pending placement on public display at the OFR and publication in the Federal Register. The version of the final regulations released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.
© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.