ABLE Financial Planning Act

ABLE Financial Planning Act

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.)

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4794 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4794

 To amend the Internal Revenue Code of 1986 to allow rollovers between 
                    529 programs and ABLE accounts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2016

 Mr. Crenshaw (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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ABLE Financial Planning Act''.

SEC. 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.

SEC. 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.
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