S. 816Senate115th Congress (2017-2019)In Committee

ABLE Financial Planning Act

Introduced April 4, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:29 PM UTC

The ABLE Financial Planning Act changes the tax code so that money saved in a 529 college‑savings plan can be moved into an ABLE account, which is a tax‑advantaged savings tool for people with disabilities. The change applies to anyone who has a 529 plan and wants to transfer funds to an ABLE account for the designated beneficiary or a family member, as long as the contribution limits for the ABLE account are not exceeded.

Key Provisions

  • Adds a new option (subclause III) that permits rollovers from a 529 plan to an ABLE account for the designated beneficiary or a family member.
  • The rollover cannot cause the total contributions to the ABLE account in a tax year to exceed the ABLE account’s annual contribution limit.
  • The amendment takes effect for distributions made after the law is enacted.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

April 4, 2017

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SenateIntro Referral

Introduced in Senate

April 4, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

April 4, 2017

Floor Debate

1 member

What members said about S. 816 on the floor

1 Republican
David P. Joyce
Rep. David P. JoyceR-OH-14 · Apr 20, 2017

Mr. Speaker, I would like to recognize Mr. Bill Gaskin of Chagrin Falls, Ohio, who for the past forty years has committed his life to growing manufacturing in Northeast Ohio and around the country.…

Bill Text

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Introduced in SenateIssued April 4, 2017

II

115th CONGRESS

1st Session

S. 816

IN THE SENATE OF THE UNITED STATES

April 4, 2017

Mr. Casey (for himself, Mr. Burr, and Mr. Van Hollen) introduced the following bill; which was read twice and referred to the Committee on Finance

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.