Tax Cut and Jobs Act (TCJA) | ABLE accounts | Lexington KY Tax Attorney

ABLE Accounts Adjusted

ABLE accounts, established under Section 529A of the Internal Revenue Code, allow some individuals with disabilities to retain higher amounts of savings without losing their Social Security and Medicaid benefits.

The Tax Cut and Jobs Act (TCJA) allows money in a 529 education plan to be rolled over to a 529A ABLE account, but rollovers may count toward the annual contribution limit for ABLE accounts ($15,000 in 2018). The new law also changes the rules on contributions to ABLE accounts by designated beneficiaries who have earned income from employment.

If you have questions about ABLE accounts and the tax changes, call Gayheart and Campbell, PLLC at 859-276-6193 or request a consultation here. For more information about the TCJA’s provisions, visit our main informational page here.