IRS Issues Final Regulations For ABLE Accounts

The Internal Revenue Service finalized two previously issued proposed regulations. Eligible individuals may now put more money into their ABLE accounts and roll money from their qualified tuition programs (529 plans) into their ABLE accounts. Also, certain contributions made to ABLE accounts by low- and moderate-income workers may now qualify for the Saver’s Credit. Also, before January 1, 2026, funds are allowed to be rolled over from a designated beneficiary’s 529 plan to an ABLE account for the same beneficiary or a family member. The regulations provide that rollovers from 529 plans, together with any contributions made to the designated beneficiary’s ABLE account cannot exceed the annual ABLE contribution limit. For the full release from the IRS, see here.