WASHINGTON — The Internal Revenue Service today releasedproposed
regulationsimplementing a new
federal law authorizing states to offer specially-designed tax-favored ABLE
accounts to people with disabilities who became disabled before age 26.
The Achieving a Better Life Experience (ABLE) account provision was signed into
law in December 2014. Recognizing the special financial burdens faced by
families raising children with disabilities, ABLE accounts are designed to
enable people with disabilities and their families to save for and pay for
The new law authorizes any state to offer its residents the option of setting up
an ABLE account. Alternatively, a state may contract with another state that
offers such accounts. The account owner and designated beneficiary of the
account is the disabled individual. In general, a designated beneficiary can
have only one ABLE account at a time, and must have been disabled before his or
The law provides what it means to be disabled for this purpose.
Contributions in a total amount up to the annual gift tax exclusion amount,
currently $14,000, can be made to an ABLE account on an annual basis, and
distributions are tax-free if used to pay qualified disability expenses.
are limited, however. The proposed regulations provide a safe harbor that
permits a qualified ABLE program to satisfy this requirement regarding total
cumulative contributions if the program prohibits any additional contributions
to an account as soon as the account balance reaches the specified contribution
limit under such State’s program established under section 529. Once the account
balance falls below the prescribed limit, contributions may resume, subject to
the same limitation.]
These are expenses that relate to the designated beneficiary’s blindness or
disability and help that person maintain or improve health, independence and
quality of life. For example, they can include housing, education,
transportation, health, prevention and wellness, employment training and
support, assistive technology and personal support services and other expenses.
In general, an ABLE account is not to be counted in determining the designated
beneficiary’s eligibility for many federal means-tested programs, or in
determining the amount of any benefit or assistance provided under those
programs, although special rules and limits apply for Supplemental Security
Income (SSI) purposes.
The proposed regulations, available today for public inspection atwww.federalregister.gov,
provide guidance to state programs, designated beneficiaries and other
interested parties on a number of issues. For example, the proposed regulations
explain the flexibility the programs have in ensuring an individual’s
eligibility for an ABLE account. They also indicate that the IRS will develop
two new forms that ABLE account programs will use to report relevant account
information annually to designated beneficiaries and the IRS —Form
1099-QAfor distributions andForm
Until the issuance of final regulations, taxpayers and qualified ABLE programs
may rely on these proposed regulations.
The IRS welcomes comments. Comments must be received by Sept. 21, 2015, and may
be submitted electronically, by mail, or hand delivered to the IRS. A public
hearing is scheduled for Oct. 14, 2015, at the IRS Auditorium, 1111 Constitution
Ave. NW, in Washington. See the proposed regulations for details on submitting
comments or participating in the public hearing. More information can be found
Benefit for Disability: IRC Section 529A.
[These rules fall under Section 529 of the IRS Code, which is the same section
as the 529 Education Savings Accounts. For that reason, ABLE Accounts
appear to be similar in many respects to the education savings accounts allowing
for post-tax contributions and tax-free withdrawals.]
few months back,
I had recommended that one of my clients who owns a dental practice contact
Miller from Carr Healthcare
Realty with regard to a lease for a new
location for his office. Dave's team at Carr was able to negotiate a total savings of approximately $65K
for my client over the ten-year term of the lease.
These savings include four-months free rent during the build-out period, six-months free
rent upon opening the practice, and a reduction in the first-year rent by about
$1k per month. Dave's team also negotiated for exclusivity as the only dental
practice within the retail center even though that provision was not proposed by
the landlord in the original letter of intent.
makes working with firms like Carr Healthcare Realty even better is that this service is 100% FREE
for the tenant. Instead of charging our clients a fee for services provided, Carr Healthcare Realty gets paid a commission from the
landlord as the Tenant's Broker. So I was able to point this client in
the right direction to help him save $65k in lease payments over the next ten
years at exactly ZERO cost
to him. What a great value Carr Healthcare Realty is able to provide.
Now that I'm more familiar with this service available to tenants, I think it
would be a good idea for every practice owner who doesn't own their commercial
space to obtain a copy of their lease agreement while there are still two years
remaining on the lease term. Simply forward that lease to a specialist like Dave Miller and the Carr
team for review, and let them spot potential cost saving opportunities to be
negotiated as part of the lease renewal. They are also the
ones who will negotiate directly with the landlord at no fee to our clients.
Dave Miller is an Agent of
Carr Healthcare Realty and
specializes in representing Healthcare Professionals with all their real estate
needs. Carr Healthcare Realty has successfully negotiated over 600 lease and
sale transactions. You can reach Dave at (617)595-6497 or
email@example.com. Dave wrote
an article for our
We want to make sure that you're aware that
Massachusetts is implementing a new
Earned Sick Time Policy
that all MA-based employers must comply with effective July 1, 2015.
In short, employers are mandated to provide 1 hour of Sick Time for every 30 hours
worked; with a cap of 40 hours of Sick Time per year. This includes full-time,
part-time, temporary and seasonal employees. The Sick Time is unpaid or paid
depending on the size of the company as follows:
An employer must
provide earned paid sick time to all eligible employees if the employer
maintained an average of 11 or more employees on the payroll during the
preceding benefit year. Employers shall determine the average number of
employees by counting the number of employees, including full time, part-time,
seasonal, and temporary employees, on the payroll during each pay period and
dividing by the number of pay periods. Employees furnished to an employer by a
temporary staffing agency and paid by the staffing agency count as employees of
both the staffing agency and the employer for the purpose of determining
Employers must post the Earned Sick Time notice in a conspicuous location
accessible to employees and provide the employees with a copy. For your
convenience, we've posted a copy of the notice online which you can download,
print, and use.(Click
here for the Notice).
For 2014, the standard deduction for a single individual is $6,200 and
for a married couple is $12,400. A person will benefit by itemizing once
allowable deductions exceed the applicable standard deduction. Itemized
deductions include state and local income taxes (or sales taxes), real estate
taxes, mortgage interest, charitable contributions, and unreimbursed employee
For 2014, the personal exemption is $3,950. Individuals will claim a personal deduction for themselves, their spouse, and
The maximum earnings subject tosocial security taxes is $118,500
for 2015, up from $117,000 in 2014.
The standard mileage rateis $.575 per business mile as of
January 1, 2015, up from $.56 for 2014.
The maximum annual salary deferral into a 401(k) plan or a
403(b) plan is $18,000 in 2015, up from $17.5k in 2014. And if
you'll be 50 or older by December 31st, you can contribute an extra $6,000 into
your 401(k) or 403(b) account this year, up from $5,500 last year.
The maximum annual contribution to your IRA is $5,500 for
2014 and 2015. And if you turn 50 by December 31st, you can contribute an extra
$1,000 that year. You have until April 15, 2015 to make your 2014 IRA
In a shocking development, the
IRS recently announced that they will be honoring the FICA tax refunds
submitted by residency programs and individual doctors. The catch is
that only FICA taxes paid prior to 4/1/05 qualify.