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Page 2 of 4 Fileid: … 9qa&5498qa/2023/a/xml/cycle03/source 16:49 - 4-Nov-2022
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
CAUTION designated beneficiary’s residence, rather than to 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
designated beneficiary’s ABLE account is established, or beneficiary, without any intervening distribution or
elsewhere. deemed distribution 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
2020-50_IRB#TD-9923. IRS on or before March 1, of the following year, for
Separate accounting. A qualified ABLE program must each ABLE account from which any distribution was made
provide separate accounting for each designated or which was terminated during the calendar year. The
beneficiary. filing 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”
interest in the program or any portion of it to be used as
means a sibling, whether by blood or by adoption, and
security for a loan.
includes a brother, sister, stepbrother, stepsister,
Excess aggregate contributions. A qualified ABLE half-brother, or half-sister. If the new designated
program must provide adequate safeguards to prevent beneficiary is not an eligible individual for the tax year or is
aggregate contributions on behalf of a designated not a member of the family of the former beneficiary, the
beneficiary in excess of the limit established by the state Form 1099-QA filed with respect to the former designated
under the state's qualified tuition program (QTP). beneficiary should include in box 1 the fair market value
Aggregate contributions include contributions to any prior (FMV) of the assets in the ABLE account on the date on
ABLE account maintained by any qualified ABLE program which the change is made to the new designated
for the same designated beneficiary or any prior beneficiary.
designated beneficiary.
Statements to Recipients
Return of excess contributions and excess aggre-
gate contributions. A qualified ABLE program must If you are required to file Form 1099-QA, you must also
return an excess contribution or excess aggregate furnish a statement to the designated beneficiary of the
contribution (including all net income attributable to that ABLE account reporting distributions, and to each
excess contribution or excess aggregate contribution) to contributor who received a returned contribution (plus
the person who made the contribution on or before the earnings) attributable to the calendar year. Furnish a copy
due date (including extensions) for the federal income tax of Form 1099-QA or an acceptable substitute statement to
return of the designated beneficiary for the tax year in each recipient, but only with regard to the amounts paid to
which the excess contribution or excess aggregate that recipient. See part M in the current General
contribution was made. Instructions for Certain Information Returns.
Rollovers and program-to-program transfers. For Truncating recipient’s TIN on payee statements.
purposes of these instructions, a “rollover” means a Pursuant to Regulations section 301.6109-4, all filers of
contribution to an ABLE account of the designated this form may truncate a recipient’s TIN (social security
beneficiary (or of an eligible individual who is a member of number (SSN), individual taxpayer identification number
the family of the designated beneficiary) of all or a portion (ITIN), adoption taxpayer identification number (ATIN), or
of an amount withdrawn from the designated beneficiary’s employer identification number (EIN)) on recipient
ABLE account, provided the contribution is made within statements. Truncation is not allowed on any documents
60 days of the date of the withdrawal and, in the case of a the filer files with the IRS. A payer's TIN may not be
rollover to the designated beneficiary’s ABLE account, no truncated on any form. See part J in the current General
rollover has been made to an ABLE account of the Instructions for Certain Information Returns.
designated beneficiary within the prior 12 months.
Payer's Name and TIN
A “program-to-program transfer” means the direct
Enter the name, address, and TIN of the payer. For a
transfer of the entire balance of an ABLE account to an
program established and maintained by a state that uses
ABLE account of the same designated beneficiary in
-2- Instructions for Forms 1099-QA and 5498-QA (2023)
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