Philanthropy at the University

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P.O. Box 1321
Houston, TX 77251-1321
Physical Address:
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7000 Fannin, Suite 1200
Houston, TX 77030
Phone: 713-500-3200
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Welcome to UTHealth Gift Planning

Thank you for your interest in UTHealth. Our hope is to serve you and your family with helpful information. We have an increasing number of friends who now are benefiting from life income gifts, gift annuities, and other plans. Thank you for taking the time to explore the benefits of gift planning.

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Sunday September 23, 2018

Washington News

Washington Hotline

ABLE Accounts Enhanced Under TCJA

In IR-2018-139, the Service explained the new benefits for people with disabilities who have Achieving a Better Life Experience (ABLE) accounts. ABLE accounts are normally funded by annual gifts up to $15,000.

An ABLE account beneficiary is a person who became disabled before age 26. Funds in the ABLE account grow tax-free and may cover qualified disability-related expenses for the beneficiary. Qualified expenses include "housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services, and other disability-related expenses."

The Tax Cuts and Jobs Act (TCJA) included three new benefits for ABLE account holders. First, if the beneficiary is employed and not covered by a workplace retirement plan, he or she may contribute additional funds, up to the federal poverty limit, to an ABLE account. This amount is $12,140 in additional funds, 2018 ($13,960 in Hawaii, $15,180 in Alaska).

Second, up to $2,000 of ABLE account contributions may qualify for the Saver's Credit. An ABLE account beneficiary should file IRS Form 8880, Credit for Qualified Retirement Savings Contributions, to claim that credit.

Third, a beneficiary or family member may be able to roll over funds from a 529 plan to an ABLE account.

All of these changes were designed to increase the opportunity for people with disabilities to fund their care using an ABLE account. Further information on ABLE accounts and the changes under the TCJA are available on www.IRS.gov.

Published June 22, 2018
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