The IRS announced it intends to issue proposed regs on ABLE accounts to comply with the Tax Cuts and Jobs Act (TCJA). ABLE accounts are state-run programs for the benefit of blind or disabled persons. Contributions are nondeductible, but account earnings grow tax-deferred. Distributions equal to the total of qualified expenses are tax-free. Under the TCJA, changes include requiring the account beneficiary to ensure compliance and instructing states to adjust their programs to comply with federal law. (Notice 2018-62)
