SB165,2,76 (b) "Beneficiary" means an eligible individual for whom an account is
7established under this section.
SB165,2,88 (c) "Eligible individual" has the meaning given in 26 USC 529A.
SB165,2,119 (d) "Financial institution" means any bank, savings bank, savings and loan
10association, or credit union that is authorized to do business under state or federal
11laws relating to financial institutions.
SB165,2,1312 (e) "Qualified expenses" has the meaning given for "qualified disability
13expenses" under 26 USC 529A.
SB165,2,14 14(2) Duties of the department. The department shall do all of the following:
SB165,3,2
1(a) Ensure that an account established under this section meets the
2requirements of a qualified ABLE program under 26 USC 529A.
SB165,3,63 (b) Promulgate rules to implement and administer this section and ensure that
4amounts deposited into an account and any interest, dividends, or other gain that
5accrues on amounts deposited into the account may be used only to pay qualified
6expenses of a beneficiary.
SB165,3,87 (c) Prepare and distribute reimbursement forms for claims that are submitted
8as described in sub. (4).
SB165,3,9 9(3) Account owners; beneficiaries; contributions; termination of accounts.
SB165,3,1010 (a) An account owner may do all of the following:
SB165,3,1211 1. Establish an account under this section, at a financial institution, for a
12beneficiary.
SB165,3,1413 2. Contribute to an account or authorize any other person to contribute to the
14account.
SB165,3,16153. Change the beneficiary of an account to a family member, as defined in 26
16USC 529A
, of the previous beneficiary, if the new beneficiary is an eligible individual.
SB165,3,1817 4. Terminate an account upon the death of a beneficiary if the account owner
18is unable to change the beneficiary under subd. 3.
SB165,3,2019 (b) An individual may not be the beneficiary of more than one account that is
20established under this section.
SB165,3,2321 (c) 1. The maximum total amount of annual contributions that may be made
22by an account owner, and all persons authorized by the account owner, to an account
23that is established under this section for a particular beneficiary is $14,000.
SB165,4,3
12. The maximum total amount of all annual contributions that may be made
2by an account owner, and all persons authorized by the account owner, to an account
3that is established under this section for a particular beneficiary is $100,000.
SB165,4,84 3. If any person attempts to contribute to an account established under this
5section and that contribution would exceed one or both of the limits specified in this
6paragraph, the financial institution to which the contribution is sent shall return to
7the prospective contributor any amount of the attempted contribution that is
8necessary to prevent the limits from being exceeded.
SB165,4,149 4. If more than one person attempts to contribute to an account established
10under this section and such contributions would exceed the limits specified in this
11paragraph, and if the attempted contributions arrive at the financial institution on
12the same day, the financial institution to which the contributions are sent shall
13return to the prospective contributors any amount of the attempted contributions,
14on a prorated basis, that is necessary to prevent the limits from being exceeded.
SB165,4,1815 (d) Upon the termination of an account as described in par. (a) 4. or, if the
16account owner does not terminate the account, upon the death of all beneficiaries of
17an account, the account shall terminate and any amount remaining in the account
18shall be returned to the account owner, if he or she is still alive, or to his or her estate.
SB165,4,25 19(4) Payment of claims. If a beneficiary or account owner incurs costs for
20qualified expenses, the account owner may submit a form, created by the
21department, that summarizes the costs incurred, and payment and beneficiary
22information, along with a copy of the bill, or a copy of the receipt if the account owner
23has paid for the qualified expenses, to the financial institution at which the account
24created under this section is established. The financial institution shall pay the bill,
25or reimburse the account owner, if sufficient funds to do so are in the account.
SB165,5,6
1(5) Eligibility for long-term care programs. A person who is determining
2eligibility for an individual for a long-term care program under s. 46.27, 46.275, or
346.277, the family care benefit under s. 46.286, the family care partnership program,
4or the long-term care program defined in s. 46.2899 (1) shall exclude from the
5determination any income from assets accumulated in an account created under this
6section for a beneficiary.
SB165,2 7Section 2. 71.05 (6) (a) 27. of the statutes is created to read:
SB165,5,138 71.05 (6) (a) 27. Except as provided in subd. 28., any accumulated interest,
9dividends, or other gain that accrues from an account described under s. 16.643
10during the taxable year in which a withdrawal occurs from such an account if any
11amount of the money or other assets in the account is withdrawn by, or at the
12direction of, an account owner for any reason other than the payment of qualified
13expenses, as defined in s. 16.643 (1) (e), for the account beneficiary.
SB165,3 14Section 3. 71.05 (6) (a) 28. of the statutes is created to read:
SB165,5,1715 71.05 (6) (a) 28. Upon the termination of an account under s. 16.643 (3) (d), any
16amount in the account that is returned to an account owner, or an account owner's
17estate.
SB165,4 18Section 4. 71.05 (6) (b) 52. of the statutes is created to read:
SB165,5,2219 71.05 (6) (b) 52. Subject to the limits under s. 16.643 (3) (c) 1. and 2., any amount
20that is deposited by an account owner or any other authorized person into an account
21described under s. 16.643, and any interest, dividends, or other gain that accrues in
22the account if the interest, dividends, or other gain is redeposited into the account.
SB165,5 23Section 5. 71.07 (5) (a) 9. of the statutes is created to read:
SB165,6,224 71.07 (5) (a) 9. The amount claimed as a deduction for unreimbursed medical
25expenses under section 213 (a) of the Internal Revenue Code to the extent that the

1funds used to pay for the unreimbursed expenses for which the deduction was
2claimed were withdrawn from an account described under s. 16.643.
SB165,6 3Section 6. Initial applicability.
SB165,6,74 (1) This act first applies to taxable years beginning on January 1 of the year
5in which this subsection takes effect, except that if this subsection takes effect after
6July 31, this act first applies to taxable years beginning on January 1 of the year
7following the year in which this subsection takes effect.
SB165,6,88 (End)
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