Distributions
(A) In general
(A)In general#
Any distribution under a qualified ABLE program shall be includible in the gross income of the distributee in the manner as provided under section 72 to the extent not excluded from gross income under any other provision of this chapter.
(B)Distributions for qualified disability expenses#
For purposes of this paragraph, if distributions from a qualified ABLE program—
(i) do not exceed the qualified disability expenses of the designated beneficiary, no amount shall be includible in gross income, and
(ii) in any other case, the amount otherwise includible in gross income shall be reduced by an amount which bears the same ratio to such amount as such expenses bear to such distributions.
(B)(i)#
do not exceed the qualified disability expenses of the designated beneficiary, no amount shall be includible in gross income, and
(B)(ii)#
in any other case, the amount otherwise includible in gross income shall be reduced by an amount which bears the same ratio to such amount as such expenses bear to such distributions.
(C)Change in designated beneficiaries or programs#
(i) Rollovers from ABLE accounts Subparagraph (A) shall not apply to any amount paid or distributed from an ABLE account to the extent that the amount received is paid, not later than the 60th day after the date of such payment or distribution, into another ABLE account for the benefit of the same designated beneficiary or an eligible individual who is a member of the family of the designated beneficiary.
(ii) Change in designated beneficiaries Any change in the designated beneficiary of an interest in a qualified ABLE program during a taxable year shall not be treated as a distribution for purposes of subparagraph (A) if the new beneficiary is an eligible individual for such taxable year and a member of the family of the former beneficiary.
(iii) Limitation on certain rollovers Clause (i) shall not apply to any transfer if such transfer occurs within 12 months from the date of a previous transfer to any qualified ABLE program for the benefit of the designated beneficiary.
(C)(i)Rollovers from ABLE accounts#
Subparagraph (A) shall not apply to any amount paid or distributed from an ABLE account to the extent that the amount received is paid, not later than the 60th day after the date of such payment or distribution, into another ABLE account for the benefit of the same designated beneficiary or an eligible individual who is a member of the family of the designated beneficiary.