On November 19, 2020, the Internal Revenue Service (IRS) published the final regulations for the ABLE Act in the federal register under Section 529a, of the IRS code. The regulations provide guidance to states in their management of ABLE plans as tax-favored savings and investment accounts and defines qualified disability expenses. The IRS regulations, which are effective November 19, 2020, provide a transition period of at least two years for ABLE plans to implement these rules which gives the IRS an opportunity to address concerns and issues through notices or other guidance. Certain select provisions from the final regulations are summarized in the ABLE NRC’s Highlights and Key Takeaways document.
