Gift tax rules
For purposes of chapters 12 and 13—
(A) Contributions
(A)Contributions#
Any contribution to a qualified ABLE program on behalf of any designated beneficiary—
(i) shall be treated as a completed gift to such designated beneficiary which is not a future interest in property, and
(ii) shall not be treated as a qualified transfer under section 2503(e).
(A)(i)#
shall be treated as a completed gift to such designated beneficiary which is not a future interest in property, and
(A)(ii)#
shall not be treated as a qualified transfer under section 2503(e).
(B)Treatment of distributions#
In no event shall a distribution from an ABLE account to such account’s designated beneficiary be treated as a taxable gift.
(C)Treatment of transfer to new designated beneficiary#
The taxes imposed by chapters 12 and 13 shall not apply to a transfer by reason of a change in the designated beneficiary under subsection (c)(1)(C).