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TN HB0496

TN HB0496
AN ACT to amend Tennessee Code Annotated, Section 71-4-803 and Section 71-4-806, relative to the Achieving a Better Life Experience Act.


summary

Introduced
01/29/2025
In Committee
04/08/2025
Crossed Over
04/14/2025
Passed
04/15/2025
Dead
Signed/Enacted/Adopted
05/08/2025

Introduced Session

114th General Assembly

Bill Summary

As enacted, removes the restriction that earnings in an achieving a better life experience account may only be expended for a student's education expenses; redefines "disability certification" and "eligible individual" to have the same meaning as in the Internal Revenue Code and all rules and regulations released by the United States treasury. - Amends TCA Section 71-4-803 and Section 71-4-806.

AI Summary

This bill amends Tennessee's Achieving a Better Life Experience (ABLE) Act by modifying definitions and spending restrictions for ABLE accounts. Specifically, the bill redefines "disability certification" and "eligible individual" to align with the definitions in the Internal Revenue Code and U.S. Treasury regulations, which will likely provide more standardized and clear guidance for account management. The bill also removes previous restrictions on how funds from an individualized education account can be transferred to an ABLE account, previously limiting such transfers to educational expenses. Instead, the new language suggests more flexibility in how these funds can be used, though still requiring compliance with existing laws and rules. The changes to the definitions will take effect on January 1, 2026, while other provisions of the bill will be effective immediately upon becoming law. This legislation aims to provide more clarity and potentially greater financial flexibility for individuals with disabilities who use ABLE accounts.

Committee Categories

Budget and Finance, Health and Social Services

Sponsors (1)

Last Action

Effective date(s) 05/02/2025, 01/01/2026 (on 05/08/2025)

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