26 USC 529 - Qualified ABLE programs

Amendment of Subsection (e)

Puspan. L. 117–328, div. T, title I, § 124, Dec. 29, 2022, 136 Stat. 5314, provided that, applicable to taxable years beginning after Dec. 31, 2025, paragraphs (1)(A) and (2)(A)(i)(II) of subsection (e) of this section are amended by striking “age 26” and inserting “age 46”. See 2022 Amendment note below.

Editorial Notes

References in Text

The Stephen Beck, Jr., ABLE Act of 2014, referred to in subsec. (d)(4), is div. B of Puspan. L. 113–295, Dec. 19, 2014, 128 Stat. 4056, also known as the “Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014”. Section 103 of div. B of Puspan. L. 113–295 is set out as a note under this section.

The Social Security Act, referred to in subsecs. (e)(1)(A), (2) and (f), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Titles II, XVI, and XIX of the Act are classified generally to subchapters II (§ 401 et seq.), XVI (§ 1381 et seq.), and XIX (§ 1396 et seq.), respectively, of chapter 7 of Title 42, The Public Health and Welfare. Sections 1614 and 1861 of the Act are classified to sections 1382c and 1395x, respectively, of Title 42. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Amendments

2022—Subsec. (e)(1)(A), (2)(A)(i)(II). Puspan. L. 117–328 substituted “age 46” for “age 26”.

2018—Subsec. (c)(1)(D). Puspan. L. 115–141, § 101(o), struck out subpar. (D) which related to operating rules.

Subsec. (d)(4). Puspan. L. 115–141, § 401(a)(129), substituted “Stephen Beck, Jr., ABLE Act of 2014” for “Achieving a Better Life Experience Act of 2014”.

Subsec. (e)(4). Puspan. L. 115–141, § 401(a)(130), substituted “section 152(d)(2)(B)” for “subparagraph section 152(d)(2)(B)”.

2017—Subsec. (span)(2). Puspan. L. 115–97, § 11024(a)(2), inserted at end of concluding provisions “A designated beneficiary (or a person acting on behalf of such beneficiary) shall maintain adequate records for purposes of ensuring, and shall be responsible for ensuring, that the requirements of subparagraph (B)(ii) are met.”

Subsec. (span)(2)(B). Puspan. L. 115–97, § 11024(a)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “except in the case of contributions under subsection (c)(1)(C), if such contribution to an ABLE account would result in aggregate contributions from all contributors to the ABLE account for the taxable year exceeding the amount in effect under section 2503(span) for the calendar year in which the taxable year begins.”

Subsec. (span)(7). Puspan. L. 115–97, § 11024(a)(3), added par. (7).

2015—Subsec. (span)(1)(B) to (D). Puspan. L. 114–113, § 303(a), inserted “and” at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which read as follows: “which allows for the establishment of an ABLE account only for a designated beneficiary who is a resident of such State or a resident of a contracting State, and”.

Subsec. (c)(1)(C)(i). Puspan. L. 114–113, § 303(c)(2), substituted “member of the family” for “family member”.

Subsec. (d)(3). Puspan. L. 114–113, § 303(span)(1), struck out “and State of residence” after “the name”.

Subsec. (d)(4). Puspan. L. 114–113, § 303(c)(1), substituted “section 103” for “section 4”.

Subsec. (e)(7). Puspan. L. 114–113, § 303(span)(2), struck out par. (7). Text read as follows: “The term ‘contracting State’ means a State without a qualified ABLE program which has entered into a contract with a State with a qualified ABLE program to provide residents of the contracting State access to a qualified ABLE program.”

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Puspan. L. 117–328, div. T, title I, § 124(span), Dec. 29, 2022, 136 Stat. 5314, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.”

Effective Date of 2018 Amendment

Amendment by section 101(o) of Puspan. L. 115–141 effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of Puspan. L. 114–113, to which such amendment relates, see section 101(s) of Puspan. L. 115–141, set out as a note under section 24 of this title.

Effective Date of 2017 Amendment

Amendment by Puspan. L. 115–97 applicable to taxable years beginning after Dec. 22, 2017, see section 11024(c) of Puspan. L. 115–97, set out as a note under section 25B of this title.

Effective Date of 2015 Amendment

Puspan. L. 114–113, div. Q, title III, § 303(d), Dec. 18, 2015, 129 Stat. 3087, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2014.”

Effective Date

Section applicable to taxable years beginning after Dec. 31, 2014, see section 102(f)(1) of Puspan. L. 113–295, set out as an Effective Date of 2014 Amendment note under section 552a of Title 5, Government Organization and Employees.

Regulations

Puspan. L. 113–295, div. B, title I, § 102(f)(2), Dec. 19, 2014, 128 Stat. 4062, provided that: “The Secretary of the Treasury (or the Secretary’s designee) shall promulgate the regulations or other guidance required under section 529A(g) of the Internal Revenue Code of 1986, as added by subsection (a), not later than 6 months after the date of the enactment of this Act [Dec. 19, 2014].”

Purposes

Puspan. L. 113–295, div. B, title I, § 101, Dec. 19, 2014, 128 Stat. 4056, provided that: “The purposes of this title [title I of div. B of Puspan. L. 113–295, enacting this section, amending sections 26, 529, 877A, 4965, 4973, and 6693, of this title, section 552a of Title 5, Government Organization and Employees, sections 521, 541, and 707 of Title 11, Bankruptcy, and section 5517 of Title 12, Banks and Banking, and enacting provisions set out as notes under this section, section 529 of this title, section 552a of Title 5, and section 521 of Title 11] are as follows:

“(1) To encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life.

“(2) To provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance, the Medicaid program under title XIX of the Social Security Act [42 U.S.C. 1396 et seq.], the supplemental security income program under title XVI of such Act [42 U.S.C. 1381 et seq.], the beneficiary’s employment, and other sources.”

Treatment of ABLE Accounts Under Certain Federal Programs

Puspan. L. 113–295, div. B, title I, § 103, Dec. 19, 2014, 128 Stat. 4063, provided that:

“(a)Account Funds Disregarded for Purposes of Certain Other Means-Tested Federal Programs.—Notwithstanding any other provision of Federal law that requires consideration of 1 or more financial circumstances of an individual, for the purpose of determining eligibility to receive, or the amount of, any assistance or benefit authorized by such provision to be provided to or for the benefit of such individual, any amount (including earnings thereon) in the ABLE account (within the meaning of section 529A of the Internal Revenue Code of 1986) of such individual, any contributions to the ABLE account of the individual, and any distribution for qualified disability expenses (as defined in subsection (e)(5) of such section) shall be disregarded for such purpose with respect to any period during which such individual maintains, makes contributions to, or receives distributions from such ABLE account, except that, in the case of the supplemental security income program under title XVI of the Social Security Act [42 U.S.C. 1381 et seq.]—

“(1) a distribution for housing expenses (within the meaning of such subsection) shall not be so disregarded, and

“(2) in the case of such program, any amount (including such earnings) in such ABLE account shall be considered a resource of the designated beneficiary to the extent that such amount exceeds $100,000.

“(span)Suspension of SSI Benefits During Periods of Excessive Account Funds.—

“(1)In general.—The benefits of an individual under the supplemental security income program under title XVI of the Social Security Act shall not be terminated, but shall be suspended, by reason of excess resources of the individual attributable to an amount in the ABLE account (within the meaning of section 529A of the Internal Revenue Code of 1986) of the individual not disregarded under subsection (a) of this section.

“(2)No impact on medicaid eligibility.—An individual who would be receiving payment of such supplemental security income benefits but for the application of paragraph (1) shall be treated for purposes of title XIX of the Social Security Act [42 U.S.C. 1396 et seq.] as if the individual continued to be receiving payment of such benefits.

“(c)Effective Date.—This section shall take effect on the date of the enactment of this Act [Dec. 19, 2014].”