The IRS on Oct. 9 released proposed rules on state-run tax-advantaged savings programs for people with disabilities and their families, following changes in the 2017 tax law.
The law amended Section 529A to allow certain “designated beneficiaries” to contribute more than the annual gift tax limit to their own ABLE accounts. The normal contribution limit for 2019 is $15,000.
The program allows a state to run a savings program under which taxpayers can contribute to ABLE accounts for the purpose of paying the account beneficiary’s qualified disability expenses. Current allowances cover payments for housing, education, and health care.
The proposed ...
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