The change below affects the following items after December 22, 2017:
- 2018 Form 5498-QA, ABLE Account Contribution Information, and
- 2018 Instructions for Form 5498-QA.
After December 22, 2017, but before January 1, 2026, taxpayers may roll over limited funds from a Qualified Tuition Program (QTP) to an ABLE account without penalty or income tax consequences. The rollover must occur within 60 days of the distribution. The designated beneficiary of the ABLE account must be:
- the same as the designated beneficiary of the QTP, or
- a family member of the designated beneficiary of the QTP.
For the 2018 reporting year, use Box 1 of Form 5498-QA to report trustee-to-trustee transfers (rollovers) from a QTP to an ABLE account.
For more on ABLE accounts, including information on allowed rollovers from QTPs, see Publication 907, Tax Highlights for Persons With Disabilities.