H.R. 1897

ABLE Financial Planning Act

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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.