Section 1 Short title
This Act may be cited as the “ABLE Financial Planning Act”.
ABLE Financial Planning Act
A BILL
To amend the Internal Revenue Code of 1986 to allow rollovers between 529 programs and ABLE accounts.
Sec. 2 Rollovers to ABLE programs from 529 programs
In general— Clause (i) of section 529(c)(3)(C) of the Internal Revenue Code of 1986 is amended by striking “or” at the end of subclause (I), by striking the period at the end of subclause (II) and inserting “, or”, and by adding at the end the following:
“(III) to an ABLE account (as defined in section 529A(e)(6)) of the designated beneficiary or a member of the family of the designated beneficiary.”
Effective date— The amendments made by this section shall apply to distributions after the date of the enactment of this Act.
Sec. 3 Rollovers to 529 programs from ABLE accounts
by striking “such payment or distribution, into another” and inserting “such payment or distribution—”
“(I) into another”
by striking the period at the end and inserting “, or”, and
by adding at the end the following new clause:
“(II) to a qualified tuition program (as defined in section 529(b)) for the benefit of the same designated beneficiary or a member of the family of such designated beneficiary.”
Effective date— The amendments made by this section shall apply to distributions after the date of the enactment of this Act.