The 529 and ABLE Account Improvement Act

Posted on March 28, 2017

The 529 and ABLE Account Improvement Act

To amend the Internal Revenue Code of 1986 to make improvements in the rules related to qualified tuition programs and qualified ABLE programs

Synopsis:

H.R. 529 would amend the tax code relating to 529 and ABLE accounts. ABLE accounts are tax-advantaged savings accounts, similar to 529s, established for children with disabilities to save for disability related expenses. These accounts are not counted as assets when determining eligibility for Medicaid and Social Security. This bill encourages employers to contribute to these accounts by providing them with tax incentives and aid for small employer pension plans. It also repeals restrictions on the amount of times a family can rollover from 529 to ABLE accounts, creating greater ease and flexibility for account holders.

U.S. Rep. Lynn Jenkins
H.R. 529 lead sponsor

Supporters:

Reps. Lynn Jenkins (R-Kan.), Ron Kind (D-Wis.), Robert Wittman (R-Va.); College Savings Foundation, Bank of America Merrill Lynch, JP Morgan Chase & Co, Intuition ABLE Solutions, Wells Fargo, NextGen College Investing Plan, College Savings Plans Network, First National Bank Omaha.