Sec. 11024. Increased contributions to ABLE accounts
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Section 529A(b)(2)(B) is amended to read as follows: except in the case of contributions under subsection (c)(1)(C), if such contribution to an ABLE account would result in aggregate contributions from all contributors to the ABLE account for the taxable year exceeding the sum of— the amount in effect under section 2503(b) for the calendar year in which the taxable year begins, plus in the case of any contribution by a designated beneficiary described in paragraph
(7)before January 1, 2026, the lesser of— compensation (as defined by section 219(f)(1)) includible in the designated beneficiary's gross income for the taxable year, or an amount equal to the poverty line for a one-person household, as determined for the calendar year preceding the calendar year in which the taxable year begins. . Paragraph
(2)of section 529A(b) is amended by adding at the end the following: A designated beneficiary (or a person acting on behalf of such beneficiary) shall maintain adequate records for purposes of ensuring, and shall be responsible for ensuring, that the requirements of subparagraph (B)(ii) are met. Section 529A(b) is amended by adding at the end the following: For purposes of paragraph (2)(B)(ii)— A designated beneficiary described in this paragraph is an employee (including an employee within the meaning of section 401(c)) with respect to whom— no contribution is made for the taxable year to a defined contribution plan (within the meaning of section 414(i)) with respect to which the requirements of section 401(a) or 403(a) are met, no contribution is made for the taxable year to an annuity contract described in section 403(b), and no contribution is made for the taxable year to an eligible deferred compensation plan described in section 457(b). The term poverty line has the meaning given such term by section 673 of the Community Services Block Grant Act ( 42 U.S.C. 9902 ). . Section 25B(d)(1) is amended by striking and at the end of subparagraph (B)(ii), by striking the period at the end of subparagraph
(C)and inserting , and , and by inserting at the end the following: the amount of contributions made before January 1, 2026, by such individual to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
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Sec. 11024
Increased contributions to ABLE accounts
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