The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9923) as guidance regarding tax-advantaged “achieving a better life experience” (ABLE) accounts.
The “Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014” (ABLE Act) established the rules for states (or state agencies) to follow regarding federal tax-favored savings programs for eligible individuals with a disability as the owners and designated beneficiaries of ABLE accounts—accounts to which contributions may be made to meet qualified disability expenses. ABLE accounts also receive favorable treatment for purposes of certain means-tested federal programs.
Today’s final regulations [PDF 394 KB] (38 pages as published in the Federal Register on November 19, 2020) finalize proposed regulations and earlier guidance provided by IRS notices. The final regulations:
For background on ABLE accounts (and the prior IRS guidance and proposed regulations), read TaxNewsFlash
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