skip to main content

H.R. 4794 (114th): ABLE Financial Planning Act


The text of the bill below is as of Mar 17, 2016 (Introduced). The bill was not enacted into law.


I

114th CONGRESS

2d Session

H. R. 4794

IN THE HOUSE OF REPRESENTATIVES

March 17, 2016

(for himself, Mr. Van Hollen, Mrs. McMorris Rodgers, and Mr. Sessions) introduced the following bill; which was referred to the Committee on Ways and Means

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.