As I have previously discussed, the new ABLE Act allows individuals with disabilities to take advantage of a new savings plan with tax advantages for qualified disability expenses. The IRS must issue guidance on the new Sec. 529A by June 19, but last week the IRS informed states through Notice 2015-18 that they can go through with creating a state ABLE Program prior to the guidance. Accounts created prior to the guidance will continue to receive benefits and time will be given for plans to come into compliance once the guidance rules have been issued.
See Sally P. Schreiber, Sec. 529A ABLE Accounts May Be Set Up Before The IRS Issues Guidance, Journal of Accountancy, March 10, 2015.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
