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AH XSL/XML Fileid: … 9qa&5498qa/2023/a/xml/cycle03/source (Init. & Date) _______

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Department of the Treasury
Internal Revenue Service
2023

Instructions for

Forms 1099-QA and 5498-QA

Distributions From ABLE Accounts and ABLE Account Contribution Information

Section references are to the Internal Revenue Code Electronic reporting. Form 5498-QA can only be
unless otherwise noted. ! filed on paper.
CAUTION
Future Developments
For the latest information about developments related to Qualified ABLE Program
Forms 1099-QA and 5498-QA and their instructions, such
as legislation enacted after they were published, go to A qualified ABLE program is a program established and
IRS.gov/Form1099QA or IRS.gov/Form5498QA. maintained by a state, or agency, or instrumentality of a
state:
What's New • Under which an ABLE account may be established for a
blind or disabled individual whose blindness or disability
Electronic reporting. Form 1099-QA can be filed occurred before age 26 (an “eligible individual”), who is
electronically beginning January 1, 2023. the owner and designated beneficiary of the account;
Continuous-use form and instructions. Form • Which permits contributions to such ABLE account to
1099-QA and its instructions, contained herein, have been pay for the qualified disability expenses of the account’s
converted from an annual revision to continuous use. Both designated beneficiary;
the form and instructions will be updated as needed. For • Which limits a designated beneficiary to one ABLE
the most recent version, go to IRS.gov/Form1099QA. account; and
• That meets the other requirements of section 529A.
Contributions. Contributions (including any
contributions from a section 529 program, but not Contributions. A program is not treated as a qualified
including contributions of the designated beneficiary’s ABLE program unless it provides that no contribution will
compensation income made under section 529A(b)(2)(B)) be accepted:
made to your ABLE account in 2023 can’t exceed 1. Unless it is in cash; or
$17,000. Also, see Contributions, later, for more 2. Except in the case of a rollover or
information. program-to-program transfer from an ABLE account, if
Reminders such contribution would result in aggregate contributions
from all contributors to the ABLE account for the tax year
In addition, you should also use the 2023 General exceeding the sum of:
Instructions for Certain Information Returns. Those
general instructions include information about the a. $17,000 (in 2023), plus
following topics. b. In the case of additional contributions made by
• Who must file. certain employed ABLE account designated beneficiaries,
• When and where to file. an amount up to the lesser of:
• Electronic reporting. i. The designated beneficiary’s compensation for the
• Corrected and void returns. tax year, or
• Statements to recipients.
ii. The poverty line amount for a one-person
• Taxpayer identification numbers (TINs).
household (Community Services Block Grant Act (42
• Backup withholding.
U.S.C. 9902)). For 2023, the allowable amount is:
• Penalties.
• Other general topics. $13,590 in the continental United States,
$16,990 in Alaska, and
You can get the General Instructions for Certain $15,630 in Hawaii.
Information Returns at IRS.gov/1099GeneralInstructions
or go to IRS.gov/Form1099QA or IRS.gov/Form5498QA. Note. The amount is based on P.L. 115-97, section
11024(a)(1)(B)(ii)(II), which allows for “an amount equal to
Online fillable forms. Due to the very low volume of
the poverty line for a one-person household, as
paper Forms 1099-QA and 5498-QA received and
processed by the IRS each year, these forms have been determined for the calendar year preceding the calendar
year in which the tax year begins.”
converted to online fillable PDFs. You may fill out these
forms, available at IRS.gov/Form1099QA and at IRS.gov/
Form5498QA, and send Copy B to each recipient.

Nov 4, 2022 Cat. No. 67557E

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        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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the EIN of the state, enter the name of the state on the first
name line and the name of the program on the second Specific Instructions for Form
name line.
5498-QA
Recipient's Name and TIN
Who Must File
List the designated beneficiary as the recipient unless you
are reporting a returned excess contribution to the Any state, or its agency, or instrumentality that establishes
contributor. In that case, list the contributor as the and maintains a qualified ABLE program must file, for
recipient. Enter the TIN of the applicable recipient. each ABLE account, a Form 5498-QA, ABLE Account
Contribution Information, with the IRS on or before May
Account Number 31, 2024. The filing may be done by either an officer or
The IRS encourages you to designate an account number employee of the state, or its agency, or instrumentality
for all Forms 1099-QA that you file. See part L in the having control of the qualified ABLE program, or the
current General Instructions for Certain Information officer’s or employee’s designee.

Returns. Statements to Beneficiaries
Box 1. Gross Distribution If you are required to file Form 5498-QA with the IRS, you
Enter the gross distribution from the ABLE account during must also furnish a statement to the designated
the calendar year. The gross distribution includes beneficiary by March 15, 2024. Furnish a copy of Form
amounts distributed that the designated beneficiary 5498-QA or an acceptable substitute statement to each
intends to roll over to another ABLE account, but does not beneficiary. See part M in the 2023 General Instructions
include program-to-program transfers. See Rollovers and for Certain Information Returns.
program-to-program transfers, earlier. On a Form Truncating beneficiary’s TIN on payee statements.
1099-QA for a contributor, enter in box 1 the amount(s) of Pursuant to Regulations section 301.6109-4, all filers of
excess contributions returned plus earnings thereon. this form may truncate a beneficiary’s TIN (social security
number (SSN), individual taxpayer identification number
Box 2. Earnings (ITIN), adoption taxpayer identification number (ATIN), or
To determine the earnings on the gross distribution employer identification number (EIN)) on payee
reported in box 1, see Regulations section 1.529A-3(c). statements. Truncation is not allowed on any documents
the filer files with the IRS. An issuer's TIN may not be
Box 3. Basis truncated on any form. See part J in the 2023 General
Enter the portion of the distribution that constitutes the Instructions for Certain Information Returns.
return of investment in the account. The amount of the
gross distribution minus the earnings portion of that Account Number
distribution is the portion of the distribution that constitutes The IRS encourages you to designate an account number
the return of investment in the account. This amount is for all Forms 5498-QA that you file. See part L in the 2023
computed by subtracting the amount in box 2 from the General Instructions for Certain Information Returns.
amount in box 1.
Box 1. ABLE Contributions
Box 4. Program-to-Program Transfer Checkbox Enter the total amount of contributions made to the ABLE
Check this box if a program-to-program transfer was account in 2023. Include all cash contributions, QTP to
made from this ABLE account to another ABLE account ABLE rollovers, and QTP to ABLE program-to-program
during the calendar year. See Rollovers and transfers. Total contributions do not include any excess
program-to-program transfers, earlier. contributions returned by the due date of the designated
beneficiary's 2023 return (including extensions). Do not
Box 5. ABLE Account Terminated Checkbox include the amount of any rollover or program-to-program
Check the box if the ABLE account terminated during the transfer. If no contributions were made in 2023, enter zero
calendar year. in this box.

Box 6. Other Than Designated Beneficiary Box 2. ABLE to ABLE Rollovers
Checkbox Enter the amount of any rollover or program-to-program
Check this box if this form is being filed with respect to a transfer to this ABLE account from another ABLE account
distribution to, or for the benefit of, someone other than in 2023. Do not include any contributions from a section
the designated beneficiary of the ABLE account, for 529 program. See Rollovers and program-to-program
example, a distribution of an excess contribution to the transfers, earlier.
contributor.
Box 3. Cumulative Contributions
You may, but are not required to, enter the amount of
cumulative contributions to this ABLE account. This
amount is the total of amounts contributed since the
establishment of the ABLE account, including amounts
contributed to an ABLE account for the same designated
beneficiary that was rolled over, or directly transferred (in

Instructions for Forms 1099-QA and 5498-QA (2023) -3-

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a program-to-program transfer), to the current ABLE Report only one primary code number for the type of
account. disability for which the designated beneficiary is receiving
ABLE qualifying benefits. If more than one code applies,
Box 4. Fair Market Value select the most significant code.
Enter the FMV of the account as of December 31, 2023. • Code 1—Developmental Disorders: Autistic Spectrum
Disorder, Asperger’s Disorder, Developmental Delays and
Box 5. Account Opened Checkbox Learning Disabilities.
Check the box if the ABLE account was opened in 2023. • Code 2—Intellectual Disability: May be reported as
mild, moderate, or severe intellectual disability.
Box 6. Basis of Eligibility • Code 3—Psychiatric Disorders: Schizophrenia; Major
You must enter one code letter in box 6. depressive disorder; Post-traumatic stress disorder
(PTSD); Anorexia nervosa; Attention deficit/hyperactivity
CAUTION! disorder (AD/HD); Bipolar disorder.
Report the basis of the designated beneficiary's • Code 4—Nervous Disorders: Blindness, Deafness,
Cerebral Palsy, Muscular Dystrophy, Spina Bifida,
eligibility using the codes below.
Juvenile-onset Huntington's disease; Multiple sclerosis;
• Code A—Eligibility established under section 529A(e)
Severe sensorineural hearing loss; Congenital cataracts.
(1)(A), SSDI, Title II SSA.
• Code B—Eligibility established under section 529A(e) • Code 5—Congenital Anomalies: Chromosomal
abnormalities, including Down Syndrome, Osteogenesis
(1)(A), SSI, Title XVI SSA.
imperfecta; Xeroderma pigmentosum; Spinal muscular
• Code C—Designated beneficiary is the subject of a
atrophy; Fragile X syndrome; Edwards syndrome.
disability certification filed with the IRS for 2023.
• Code 6—Respiratory Disorders: Cystic Fibrosis.
Box 7. Type of Disability Code • Code 7—Other: Includes Tetralogy of Fallot;
Hypoplastic left heart syndrome; End-stage liver disease;
The following information will only be used for Juvenile-onset rheumatoid arthritis; Sickle cell disease;
! aggregate reporting purposes as required by law. Hemophilia; and any other disability not listed under
CAUTION codes 1 through 6.

-4- Instructions for Forms 1099-QA and 5498-QA (2023)

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