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H.R. 1897House115th Congress (2017-2019)In Committee

ABLE Financial Planning Act

Sponsored by Cathy McMorris RodgersRep. Cathy McMorris Rodgers (R-WA)
Introduced April 4, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:20 PM UTC

The ABLE Financial Planning Act changes the tax code so that money saved in a 529 college‑savings plan can be transferred, or rolled over, into an ABLE account, which is a tax‑advantaged savings vehicle for people with disabilities. The change lets the designated beneficiary—or a family member—move those funds, as long as the total contributions to the ABLE account stay within the annual limit. The amendment takes effect for any distributions made after the law is enacted.

Key Provisions

  • Amends the Internal Revenue Code to add a new rollover option (subclause III) that permits moving funds from a 529 plan to an ABLE account for the designated beneficiary or a family member.
  • Specifies that the rollover cannot cause the ABLE account’s total contributions for the year to exceed the existing ABLE contribution limit.
  • Sets the effective date of the new rollover rule to apply to distributions made after the law’s enactment.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 4, 2017

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HouseIntro Referral

Introduced in House

April 4, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 4, 2017

Bill Text

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Introduced in HouseIssued April 4, 2017

I

115th CONGRESS

1st Session

H. R. 1897

IN THE HOUSE OF REPRESENTATIVES

April 4, 2017

Mrs. McMorris Rodgers (for herself, Mr. Sessions, Mr. Cárdenas, Mr. Smith of New Jersey, and Mr. Langevin) 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 from 529 programs to 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.