Page 280 - Small Business IRS Training Guides

Saver’s Credit

Provision 11024 expands the Saver’s Credit to include some contributions to ABLE accounts. Starting in 2018, ABLE

account beneficiaries may qualify for the Saver’s Credit for a percentage of the contributions they make to their ABLE
accounts. Up to $2,000 of these contributions qualify for this special credit designed to help low- and moderate-income

workers.

Beneficiaries are eligible for the credit if they:

• Are at least 18 years old at the close of the taxable year

• Are not a dependent or a full-time student

• Meet the income requirements

Exercise 2

Jill, a full-time student, works part time at a local retail store. Jill earned $5,000 in 2018 and deposited all earnings into

her own ABLE account. Jill is an employee with respect to whom no contribution is made to a plan described in IRC
section 529A(b)(7)(A). Is Jill eligible for the Saver’s Credit?

 Yes  No

Rollovers and Transfers from Section 529 Plans

Provision 11025 allows rollovers and transfers between ABLE accounts of eligible family members. Family members are

defined in IRC 152(d)(2)(B) as brothers, sisters, stepbrothers, and stepsisters.

73233-102 11024/11025-4 Tax Cuts and Jobs Act