The IRS has released the 2018 Instructions for Form 1099-QA and 5498-QA. Form 1099-QA is used to report distributions from ABLE accounts, and Form 5498-QA is used to report ABLE account contribution information.
There are a number of changes from the previous revision:
- Increased contributions may be made to ABLE accounts by a designated beneficiary under certain circumstances
- Funds from a qualified tuition program (also known as a 529 plan) may be rolled into an ABLE account of the designated beneficiary of the qualified tuition program or his/her family member without penalty
- Contributions from a 529 program should not be included in Box 2 “Rollover Contributions”
- Cash contribution limit has increased from $14,000 to $15,000
To view the 2018 Form 1099-QA and 5498-QA Instructions, please click here.