Today's Law As Amended


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SB-218 The Qualified ABLE Program: tax-advantaged savings accounts.(2017-2018)



As Amends the Law Today
As Amends the Law on Nov 27, 2017


SECTION 1.

 Section 4885 is added to the Welfare and Institutions Code, to read:

4885.
 (a) (1) Notwithstanding any other state law, and only to the extent permitted under federal law, all amounts in the designated beneficiary’s ABLE account, upon the death of the designated beneficiary, may be transferred to an ABLE account for another eligible individual specified by either the designated beneficiary or the estate of the designated beneficiary.
(2) Upon establishing a CalABLE account and prior to any transfer of funds from one ABLE account to another pursuant to paragraph (1), the board shall notify all designated beneficiaries or the estates of the designated beneficiaries, as applicable, of the potential tax consequences of transferring funds from one ABLE account to another pursuant to paragraph (1).
(b) Following the death of a designated beneficiary, and only after the State Department of Health Care Services has received approval by the federal Centers for Medicare and Medicaid Services, both of the following shall apply:
(1) The state shall not seek recovery pursuant to Section 14009.5 of any amount remaining in the designated beneficiary’s ABLE account for any amount of medical assistance paid for the designated beneficiary after the establishment of the account under the state’s Medicaid plan established under Title XIX of the federal Social Security Act.
(2) The state shall not file a claim for the payment under subdivision (f) of Section 529A of the Internal Revenue Code.