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Page 2 of 4 Fileid: … 9qa&5498qa/2024/a/xml/cycle06/source 13:56 - 28-Feb-2024
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
The contribution limit is determined using the which the transferor ABLE account is closed upon
! poverty guideline applicable in the state of the completion of the transfer, or of part or all of the balance to
CAUTION designated beneficiary’s residence, rather than an ABLE account of another eligible individual who is a
the guideline applicable in the state in which the member of the family of the former designated beneficiary,
designated beneficiary’s ABLE account is established, or without any intervening distribution or deemed distribution
elsewhere. to the designated beneficiary.
An employed designated beneficiary is not eligible for
the increased contribution limit for the tax year if any Specific Instructions for Form
contribution is made on behalf of the employee to a 1099-QA
defined contribution plan (within the meaning of section
414(i)), a section 403(b) plan, or a section 457(b) plan. Who Must File
The designated beneficiary is responsible for maintaining Any state or its agency or instrumentality that establishes
adequate records to document the eligibility for increased and maintains a qualified ABLE program must file a Form
contributions. See T.D. 9923, available at IRS.gov/IRB/ 1099-QA, Distributions From ABLE Accounts, with the IRS
2020-50_IRB#TD-9923. on or before March 1, of the following year, for each
Separate accounting. A qualified ABLE program must ABLE account from which any distribution was made or
provide separate accounting for each designated which was terminated during the calendar year. The filing
beneficiary. may be done by either an officer or employee of the state,
or its agency, or instrumentality having control of the
Limited investment direction. A qualified ABLE
qualified ABLE program, or the officer’s or employee’s
program provides that a designated beneficiary may,
designee.
directly or indirectly, direct the investment of any
contributions to the program (or any earnings on it) no Do not file Form 1099-QA for a change in the name of
more than two times in any calendar year. the designated beneficiary on an ABLE account if the new
designated beneficiary is an eligible individual and a
Pledging of interest as security. A program is not
treated as a qualified ABLE program if it allows any member of the family of the former designated beneficiary.
For these purposes, a “member of the family” means a
interest in the program, or any portion of it, to be used as
sibling, whether by blood or by adoption, and includes a
security for a loan.
brother, sister, stepbrother, stepsister, half-brother, or
Excess aggregate contributions. A qualified ABLE half-sister. If the new designated beneficiary is not an
program must provide adequate safeguards to prevent eligible individual for the tax year or is not a member of the
aggregate contributions on behalf of a designated family of the former beneficiary, the Form 1099-QA filed
beneficiary in excess of the limit established by the state with respect to the former designated beneficiary should
under the state's qualified tuition program (QTP). include in box 1 the fair market value (FMV) of the assets
Aggregate contributions include contributions to any prior in the ABLE account on the date on which the change is
ABLE account maintained by any qualified ABLE program made to the new designated beneficiary.
for the same designated beneficiary or any prior
designated beneficiary. Statements to Recipients
Return of excess contributions and excess aggregate If you are required to file Form 1099-QA, you must also
contributions. A qualified ABLE program must return an furnish a statement to the designated beneficiary of the
excess contribution or excess aggregate contribution ABLE account reporting distributions, and to each
(including all net income attributable to that excess contributor who received a returned contribution (plus
contribution or excess aggregate contribution) to the earnings) attributable to the calendar year. Furnish a copy
person who made the contribution on or before the due of Form 1099-QA or an acceptable substitute statement to
date (including extensions) for the federal income tax each recipient, but only with regard to the amounts paid to
return of the designated beneficiary for the tax year in that recipient. See part M in the current General
which the excess contribution or excess aggregate Instructions for Certain Information Returns.
contribution was made. Truncating recipient’s TIN on payee statements.
Rollovers and program-to-program transfers. For Pursuant to Regulations section 301.6109-4, all filers of
purposes of these instructions, a “rollover” means a this form may truncate a recipient’s TIN (social security
contribution to an ABLE account of the designated number (SSN), individual taxpayer identification number
beneficiary (or of an eligible individual who is a member of (ITIN), adoption taxpayer identification number (ATIN), or
the family of the designated beneficiary) of all or a portion employer identification number (EIN)) on recipient
of an amount withdrawn from the designated beneficiary’s statements. Truncation is not allowed on any documents
ABLE account, provided the contribution is made within the filer files with the IRS. A payer's TIN may not be
60 days of the date of the withdrawal and, in the case of a truncated on any form. See part J in the current General
rollover to the designated beneficiary’s ABLE account, no Instructions for Certain Information Returns.
rollover has been made to an ABLE account of the
Payer's Name and TIN
designated beneficiary within the prior 12 months.
Enter the name, address, and TIN of the payer. For a
A “program-to-program transfer” means the direct
program established and maintained by a state that uses
transfer of the entire balance of an ABLE account to an
the EIN of the state, enter the name of the state on the first
ABLE account of the same designated beneficiary in
2 Instructions for Forms 1099-QA and 5498-QA (2024)
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