Did you hear that the US has proposed rules to create its own RDSP-like program through the ABLE (Achieving A Better Life Experience) Act.
YES (see below Brock comment on this).
They are accepting comments until Sept. 21 2015 before a public hearing is scheduled in the US capital on October 14.
THANKS – I had NOT seen this.
Some US-American Canadians are suggesting this might be a good opportunity to highlight to the States their inconsistency between treatment of RDSPs and RRSPs in the hopes of improving reporting requirements for RDSP holders .
What do you think?
ABSOLUTELY. I can post on Brock this and any suggestions you have on how best to do this.
Well guess what bit of legislation just passed in the House of Representatives today? The legislation is the ABLE Act or Achieving a Better Life Experience. This new act uses the tax system to allow disabled people to save for their future needs. Ironically enough it sounds a lot like Canada’s Registered Disability Savings Program (RDSP).
Guidance Under Section 529A: Qualified ABLE Programs
Comment Now / View Comments:
Notice Of Proposed Rulemaking And Notice Of Public Hearing.
This document contains proposed regulations under section 529A of the Internal Revenue Code that provide guidance regarding programs under The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014. Section 529A provides rules under which States or State agencies or instrumentalities may establish and maintain a new type of tax-favored savings program through which contributions may be made to the account of an eligible disabled individual to meet qualified disability expenses. These accounts also receive favorable treatment for purposes of certain means-tested Federal programs. In addition, these proposed regulations provide corresponding amendments to regulations under sections 511 and 513, with respect to unrelated business taxable income, sections 2501, 2503, 2511, 2642 and 2652, with respect to gift and generation-skipping transfer taxes, and section 6011, with respect to reporting requirements. This document also provides notice of a public hearing on these proposed regulations.
Table of Contents
- FOR FURTHER INFORMATION CONTACT:
- SUPPLEMENTARY INFORMATION:
- Paperwork Reduction Act
- Explanation of Provisions
- Qualification as an ABLE program
- Established and Maintained
- Establishment of an ABLE Account
- Disability Determination
- Change in Eligible Individual Status
- Contributions to an ABLE Account
- Application of Gift Tax to Contributions to an ABLE Account
- Qualified Disability Expenses
- Limitation on Number of ABLE Accounts of a Designated Beneficiary
- Residency Requirements
- Investment Direction
- Cap on Contributions
- Gift and Generation-Skipping Transfer (GST) Taxes
- Distribution on Death
- Unrelated Business Taxable Income and Filing Requirements
- Reporting Requirements
- Effective Date/Applicability Date
- Special Analyses
- Comments and Public Hearing
- Drafting Information
- List of Subjects
- Proposed Amendments to the Regulations
- PART 1—INCOME TAXES
- Example 4.
- Qualified Able Programs
- Example 1.
- Example 2.
- Example 3.
- PART 25—GIFT TAXES
- PART 26—ESTATE TAXES
- PART 301—REPORTING AND RECORDKEEPING REQUIREMENTS
Comments must be received by September 21, 2015. Outlines of topics to be discussed at the public hearing scheduled for October 14, 2015, at 10 a.m., must be received by September 21, 2015.
Send submissions to: CC:PA:LPD:PR (REG-102837-15), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-102837- 15), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC, or sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov (IRS REG-102837-15). The public hearing will be held in the Auditorium, Internal Revenue Building, 1111 Constitution Avenue NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations under section 529A, Taina Edlund or Terri Harris, (202) 317-4541, or Sean Barnett, (202) 317-5800; concerning the proposed estate and gift tax regulations, Theresa Melchiorre, (202) 317-4643; concerning the reporting provisions under section 529A, Mark Bond, (202) 317-6844; concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hearing, call Regina Johnson, (202) 317-6901 (not toll-free numbers).