ABLE Account Contribution Information

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2015

Instructions for
Forms 1099-QA and 5498-QA

Department of the Treasury
Internal Revenue Service

Distributions from ABLE Accounts and ABLE Account Contribution Information
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to
Forms 1099-QA and 5498-QA and their instructions, such as
legislation enacted after they were published, go to
www.irs.gov/form1099qa or www.irs.gov/form5498qa.

What's New
New Forms 1099-QA and 5498-QA and Instructions for
Forms 1099-QA and 5498-QA. P.L. 113-295, ABLE Act of
2014 allows individuals and families to save for the purpose
of supporting individuals with disabilities to maintain health,
independence, and quality of life by establishing an achieving
a better life experience (ABLE) savings account. Form
1099-QA, Distributions from ABLE Accounts and Form
5498-QA ABLE Account Contribution Information and these
separate instructions will provide issuers the necessary
information for completing, furnishing, and filing the forms for
the ABLE account.

Reminder

In addition, you should also use the 2015 General
Instructions for Certain Information Returns. Those general
instructions include information about the following topics.
Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Backup withholding.
Penalties.
Other general topics.
You can get the general instructions at www.irs.gov/
form1099qa or www.irs.gov/form5498qq or by calling
1-800-TAX-FORM (1-800-829-3676).

Qualified ABLE Program

A qualified ABLE program is an program established and
maintained by a state, or agency, or instrumentality;
Under which a person may make contributions for a
taxable year, for the benefit of a individual who is eligible for
the taxable year, for the ABLE account that is established for
the purpose of meeting the qualified expenses of the
designated beneficiary of the account;
Which limits a designated beneficiary to 1 ABLE account
and a resident of the sate or of a contracting state; and
That meets the other requirements of section 529A.

except in the case of contributions under section 529A (c)
(1)(C), if such contribution would result in aggregate
contributions from all contributors to the ABLE account for
the taxable year exceeding $14,000 for the calendar year in
which the taxable year begins.
Separate accounting. A qualified ABLE program must
provide separate accounting for each designated beneficiary.
Limited investment. A qualified ABLE program allows a
designated beneficiary to directly or indirectly direct the
investment of any contributions to the program (or any
earnings thereon) no more than 2 times in any calendar year.
Pledging of interest as security. A program is not treated
as a qualified ABLE program if it allows any interest in the
program or any portion thereof to be used as security for a
loan.
Excess contributions. A qualified ABLE program must
provide adequate safeguards to prevent aggregate
contributions on behalf of a designated beneficiary in excess
of the limit established by the State under section 529(b)(6).
Aggregate contributions include contributions under any prior
qualified ABLE program of any State or agency or
instrumentality thereof.

Specific Instructions for Form
1099-QA

File Form 1099-QA Distributions from ABLE Accounts, if you
(a) are an officer or an employee, or the designee of an
officer or employee, having control of a qualified ABLE
account and (b) made a distribution from the qualified ABLE
account.

Statements to Recipients

If you are required to file Form 1099-QA, you also must
furnish a statement to the recipient. Furnish a copy of Form
1099-QA or an acceptable substitute statement to each
recipient. See part M in the 2015 General Instructions for
Certain Information Returns.
Truncating recipient’s identification number on payee
statements. Pursuant to Treasury Regulations sections
301.6109-4, all filers of this form may truncate a recipient’s
identification number (social security number (SSN),
individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer
identification number (EIN)) on payee statements. Truncation
is not allowed on any documents the filer files with the IRS. A
payer/ trustee's identification number may not be truncated
on any form. See part J in the 2015 General Instructions for
Certain Information Returns.

Cash contributions. A program is not treated as a qualified
ABLE program unless it provides,
that no contribution will be accepted unless it is in cash, or

Feb 27, 2015

Cat. No. 67557E

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Payer's Name and Federal Identification
Number

Box 6. Designated Beneficiary Checkbox

Check the box if the recipient is not the designated
beneficiary under a qualified ABLE program. The term
designated beneficiary in connection with an ABLE account
established under a qualified ABLE program means the
eligible individual who established an ABLE account and is
the owner of such account.

For the payer's/trustee's name and federal identification
number, enter the name and employer identification number
(EIN) of the ABLE account. For a program established and
maintained by a state that uses 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 name line.

Specific Instructions for Form
5498-QA

Recipient's Name and Social Security Number
(SSN)

File Form 5498-QA, ABLE Account Contribution Information
with the IRS by May 31, 2016, for each person you
maintained an ABLE account during 2015.

List the designated beneficiary as the recipient if the
distribution is made directly to the designated beneficiary.
Otherwise, list the account owner as the recipient of the
distribution. Enter the SSN for the applicable recipient.

Statements to Recipients

Account Number

If you are required to file Form 5498-QA you also must
furnish a statement to the recipient by March 15, 2016.
Furnish a copy of Form 5498-QA or an acceptable substitute
statement to each recipient. See part M in the 2015 General
Instructions for Certain Information Returns.

The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 1099-QA. Additionally, the IRS encourages you to
designate an account number for all Forms 1099-QA that you
file. See part L in the 2015 General Instructions for Certain
Information Returns.

Truncating recipient’s identification number on payee
statements. Pursuant to Treasury Regulations sections
301.6109-4, all filers of this form may truncate a recipient’s
identification number (social security number (SSN),
individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer
identification number (EIN)) on payee statements. Truncation
is not allowed on any documents the filer files with the IRS. A
payer/ trustee's identification number may not be truncated
on any form. See part J in the 2015 General Instructions for
Certain Information Returns.

Box 1. Gross Distribution

Enter the gross distributions from an ABLE account
established by an eligible individual, owned by such eligible
individual, and maintained under a qualified ABLE program.
All distributions during a taxable year shall be treated as one
distribution. The value of the contract, income on the
contract, and investment in the contract shall be computed
as of the close of the calendar year in which the taxable year
begins.
Any change in the designated beneficiary of an interest in
a qualified ABLE program during a taxable year shall not be
treated as a distribution if the new beneficiary is an eligible
individual for such taxable year and a member of the family of
the former beneficiary.

Account Number

The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 5498-QA. Additionally, the IRS encourages you to
designate an account number for all Forms 5498-QA that you
file. See part L in the 2015 General Instructions for Certain
Information Returns.

Box 2. Earnings

Enter the earnings on the distributions reported in box 1 .

Box 1. ABLE Contributions

Box 3. Basis

Enter the contributions to the ABLE account in 2015.

Enter the basis of the gross distribution reported in box 1.

Box 2. Rollover Contributions

Box 4. Trustee-to-Trustee Transfer Checkbox

Enter any rollover contributions to the ABLE account
received by you in 2015.

Check this box if the distribution was made directly
(trustee-to-trustee transfer) from one ABLE account to the
extent that the amount received is paid, not later than the
60th day after the date of such payment or distribution, into
another ABLE account for the benefit of the same beneficiary
or an eligible individual who is a family member of the
designated beneficiary.

Box 3. Cumulative Contributions

Enter the cumulative contributions for the ABLE account.

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Instructions for Forms 1099-QA and 5498-QA (2015)