Instructions For Forms 1099-Qa And 5498-Qa - 2017 printable pdf download

2017

Department of the Treasury

Internal Revenue Service

Instructions for

Forms 1099-QA and 5498-QA

Distributions From ABLE Accounts and ABLE Account Contribution Information

Section references are to the Internal Revenue Code

Separate accounting. A qualified ABLE program must

unless otherwise noted.

provide separate accounting for each designated

beneficiary.

Future Developments

Limited investment direction. A qualified ABLE

For the latest information about developments related to

program provides that a designated beneficiary may

Forms 1099-QA and 5498-QA and their instructions, such

directly or indirectly direct the investment of any

as legislation enacted after they were published, go to

contributions to the program (or any earnings on it) no

more than 2 times in any calendar year.

Reminder

Pledging of interest as security. A program is not

In addition, you should also use the 2017 General

treated as a qualified ABLE program if it allows any

Instructions for Certain Information Returns. Those

interest in the program or any portion of it to be used as

general instructions include information about the

security for a loan.

following topics.

Excess aggregate contributions. A qualified ABLE

Who must file (nominee/middleman).

program must provide adequate safeguards to prevent

When and where to file.

aggregate contributions on behalf of a designated

Electronic reporting requirements.

beneficiary in excess of the limit established by the State

Corrected and void returns.

under the State's qualified tuition program. Aggregate

Statements to recipients.

contributions include contributions to any prior ABLE

Taxpayer identification numbers.

account maintained by any qualified ABLE program for

Backup withholding.

the same designated beneficiary or any prior designated

Penalties.

beneficiary.

Other general topics.

Return of excess contributions and excess aggre-

You can get the general instructions at

General

gate contributions. A qualified ABLE program must

Instructions for Certain Information Returns

return an excess contribution or excess aggregate

contribution (including all net income attributable to that

excess contribution or excess aggregate contribution) to

Qualified ABLE Program

the person who made the contribution on or before the

due date (including extensions) for the federal income tax

A qualified ABLE program is a program established and

return of the designated beneficiary for the tax year in

maintained by a State, or agency, or instrumentality of a

which the excess contribution or excess aggregate

State:

contribution was made.

Under which an ABLE account may be established for a

blind or disabled individual whose blindness or disability

Rollovers and program-to-program transfers. For

occurred before age 26 (an “eligible individual”), who is

purposes of these instructions, a “rollover” means a

the owner and designated beneficiary of the account;

contribution to an ABLE account of the designated

Which permits contributions to such ABLE account to

beneficiary (or of an eligible individual who is a member of

pay for the qualified disability expenses of the account’s

the family of the designated beneficiary) of all or a portion

designated beneficiary;

of an amount withdrawn from the designated beneficiary’s

Which limits a designated beneficiary to one ABLE

ABLE account, provided the contribution is made within

account; and

60 days of the date of the withdrawal and, in the case of a

That meets the other requirements of section 529A.

rollover to the designated beneficiary’s ABLE account, no

rollover has been made to an ABLE account of the

Cash contributions. A program is not treated as a

designated beneficiary within the prior 12 months.

qualified ABLE program unless it provides that no

contribution will be accepted:

A “program-to-program transfer” means the direct

unless it is in cash; or

transfer of the entire balance of an ABLE account to an

except in the case of a rollover or program-to-program

ABLE account of the same designated beneficiary in

transfer, if such contribution would result in contributions

which the transferor ABLE account is closed upon

from all contributors to the ABLE account for the tax year

completion of the transfer, or of part or all of the balance

exceeding $14,000 for the calendar year in which the tax

to an ABLE account of another eligible individual who is a

year begins (an “excess contribution”).

member of the family of the former designated

beneficiary, without any intervening distribution or

deemed distribution to the designated beneficiary.

Sep 16, 2016

Cat. No. 67557E

Instructions For Forms 1099-Qa And 5498-Qa - 2017

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