529 and ABLE Account Improvement Act of 2016

Summary

529 and ABLE Account Improvement Act of 2016 This bill amends the Internal Revenue Code to modify the tax treatment of qualified tuition programs (known as 529 plans) and ABLE accounts. (Tax-favored ABLE [Achieving a Better Life Experience] accounts are designed to enable individuals with disabilities to save for and pay for disability-related expenses.) The bill excludes from gross income a fringe benefit consisting of up to $100 per year (adjusted for inflation after 2016) of employer contributions to an employee's 529 or ABLE account. The employer contribution must be made: (1) to an account for which the designated beneficiary is the employee or a member of the employee's family, and (2) in connection with a payroll deduction contribution program established by the employer. The bill also: (1) expands the tax credit for small employer pension plan startup costs to include the costs of establishing a payroll deduction contribution program for 529 plans and ABLE accounts; (2) permits 529 funds to be used for transfers to an Individual Retirement Account (IRA), education loan payments, or charitable contributions without being subject to the additional tax for distributions that are not used for qualified higher education expenses; and (3) permits tax-free rollovers of funds between 529 and ABLE accounts for the benefit of the same beneficiary or a family member of the beneficiary. For the purpose of current law restrictions on the frequency of investment directions that a beneficiary or contributor may provide for a 529 or ABLE account, rebalancing investments among broad-based investment strategies established under the program is not an investment direction unless the beneficiary or contributor directs the specific investments within the strategies.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 11 May 2016

   Introduced

   Referred to the House Committee on Ways and Means.

   Source: IntroReferral

2. 11 May 2016

   Introduced

   Introduced in House

   Source: IntroReferral

3. 11 May 2016

   Introduced

   Introduced in House

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in House · 11 May 2016 · Download file

Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 11 May 2016

  ViewDownloadOpen at official source

• Introduced in House (PDF)

  Introduced in House · EN · 11 May 2016

  ViewDownloadOpen at official source

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  Vertaal document

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• Introduced in House

  summary · EN · 11 May 2016

  Open at official source

  Leesvertaling

  Vertaal dit document naar jouw taal. PoliticalRepo bewaart geen aparte kopie per EU-taal.

  Vertaal naarNL · DutchDE · GermanFR · FrenchES · SpanishIT · ItalianPL · PolishPT · PortugueseSV · SwedishDA · DanishFI · FinnishEL · GreekCS · CzechHU · HungarianRO · RomanianBG · BulgarianHR · CroatianSK · SlovakSL · SlovenianLT · LithuanianLV · LatvianET · EstonianGA · IrishMT · Maltese

  Vertaal document

  Documentvertaling op verzoek met downloadbare PDF (logo + link naar de officiële bron). Het bronbestand blijft leidend.

Sponsors

• Rep. Jenkins, Lynn [R-KS-2] · R · Sponsor
• · hswm00 · Standing

Related records

• related to → ABLE Financial Planning Act
• related to → ABLE Financial Planning Act
• related to → 529 and ABLE Account Improvement Act of 2017