On June 22, 2015, the IRS issued proposed regulations under Code Sec. 529A that provide guidance regarding programs under the ABLE Act. Section 529A provides rules under which States or State agencies or instrumentalities may establish and maintain a new type of tax-favored savings program through which contributions may be made to the account of an eligible disabled individual to meet qualified disability expenses. These accounts also receive favorable treatment for purposes of certain means-tested Federal programs.

The comment period for the proposed regulations ended September 21, 2015 and a public hearing is scheduled for October 14, 2015.

Over 200 comments have been received, which may be viewed at the following link:  ABLE Comments.

Organizations submitting comments include the following:

  • Autism Speaks.
  • Cure SMA.
  • Florida ABLE, Inc.
  • College Savings Plan Network.

See proposed regulations at the following link: Federal Register | Guidance Under Section 529A: Qualified ABLE Programs

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.