ABLE Financial Planning Act

Bill: 114-s-2703
Sponsor: full_name: Sen. Casey, Robert P., Jr. [D-PA]
Introduced: 2016-03-17
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Disability and paralysis

Higher education

Income tax exclusion

Student aid and college costs
Latest action: action_date: 2016-03-17
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2016-03-17
action_desc: Introduced in Senate
text: <p><strong>ABLE Financial Planning Act </strong></p> <p>This bill amends the Internal Revenue Code to allow tax-free rollovers of amounts in qualified tuition programs (529 plans) to qualified ABLE programs and from qualified ABLE programs to qualified tuition programs. (Tax-favored ABLE [Achieving a Better Life Experience] accounts are designed to enable individuals with disabilities to save for and pay for disability-related expenses.)</p>

tv_txt: II 114th CONGRESS 2d Session S. 2703 IN THE SENATE OF THE UNITED STATES March 17, 2016 Mr. Casey (for himself and Mr. Burr ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow rollovers between 529 programs and ABLE accounts.

1. Short title This Act may be cited as the ABLE Financial Planning Act . 2. Rollovers to ABLE programs from 529 programs (a) In general Clause (i) of section 529(c)(3)(C) of the Internal Revenue Code of 1986 is amended by striking or at the end of subclause (I), by striking the period at the end of subclause (II) and inserting , or , and by adding at the end the following: (III) to an ABLE account (as defined in section 529A(e)(6)) of the designated beneficiary or a member of the family of the designated beneficiary. Subclause (III) shall not apply to so much of a distribution which, when added to all other contributions made to the ABLE account for the taxable year, exceeds the limitation under section 529A(b)(2)(B). . (b) Effective date The amendments made by this section shall apply to distributions after the date of the enactment of this Act. 3. Rollovers to 529 programs from ABLE accounts (a) In general Clause (i) of section 529A(c)(1)(C) of the Internal Revenue Code of 1986 is amended— (1) by striking such payment or distribution, into another and inserting such payment or distribution— (I) into another , (2) by striking the period at the end and inserting , or , and (3) by adding at the end the following new clause: (II) to a qualified tuition program (as defined in section 529(b)) for the benefit of the same designated beneficiary or a member of the family of such designated beneficiary. . (b) Effective date The amendments made by this section shall apply to distributions after the date of the enactment of this Act.