Comment from National Association of Benefits and Work Incentive Specialists

The National Association of Benefits and Work Incentive Specialists (NABWIS) would like to provide comments that may affect individuals with disabilities who access public benefits including Supplemental Security Income and ABLE accounts. Comment 1: Clarification of Permissible Uses After the Growth Period (Reference to IRC §408 (Traditional IRA rules apply after growth period) The proposed regulations indicate that, following the growth period, Trump Accounts are generally governed by rules applicable to traditional IRAs under section 408. However, the regulations do not clearly define how funds are intended to be used after age 18. NABWIS recommends that the final rule provides clear, explicit guidance regarding permissible uses of funds, particularly given that public-facing materials (e.g., TrumpAccounts.gov) reference uses such as education, homeownership, and small business development. These intended uses are important motivators for families and should be aligned with regulatory language. While traditional IRA rules allow for certain penalty-free withdrawals, they do not cover all commonly cited uses, and withdrawals may still be subject to income tax. Without clear guidance, families may misunderstand the tax implications or limitations associated with accessing funds. NABWIS recommends that the final rule: • Clearly articulate allowable uses or intended policy goals for distributions, and/or • Provide clearer guidance on how existing IRA exceptions apply in this context, including tax implications. Comment 2: Expansion of ABLE Rollover Provisions (Proposed §1.530A–1(e) (Rollovers and Transfers); see Trump Accounts; Contribution Pilot Program) While the preamble to the proposed regulations discusses statutory provisions allowing for a one-time rollover of the full Trump Account balance into an ABLE account of the beneficiary during the calendar year in which the beneficiary turns age 17, NABWIS notes that this provision is not explicitly implemented in the current proposed regulatory text under §1.530A–1(e). NABWIS understands that the Department of the Treasury and the Internal Revenue Service have indicated that additional guidance will be issued in future rulemaking, including reserved sections(§§1.530A–2 through 1.530A–6). However, given the significance of this provision, we strongly urge that forthcoming regulations explicitly address and operationalize the Trump Account to ABLE Account rollover. NABWIS strongly supports the inclusion of this rollover as an essential policy mechanism to: • Preserve eligibility for means-tested benefits such as SSI and Medicaid by allowing funds to transition into a protected savings vehicle under Section 529A • Promote long-term financial stability and asset development for individuals with disabilities • Align Trump Accounts with existing, well-established disability savings frameworks To ensure effective implementation, we recommend that future regulations: • Clearly define the rollover process, including timing, reporting requirements, and trustee-to-trustee transfer standards • Clarify the interaction with ABLE contribution limits and existing rollover rules • Ensure that such rollovers are treated as non-taxable events and do not count as income for purposes of means-tested federal benefits NABWIS urges Treasury and IRS to prioritize this issue in the next phase of rulemaking. NABWIS recommends expanding this provision in the following ways: 1. Extend Eligibility Beyond Age 17 NABWIS recommends allowing rollovers beyond age 17, particularly for individuals who: • Establish disability status after age 17, or • Experience delays in disability determination processes For example, individuals may not be identified as eligible for disability benefits until early adulthood. Allowing a later rollover would ensure that these individuals can still benefit from ABLE account protections. 2. Align with SSI Redetermination Timelines NABWIS recommends extending the rollover window to at least 24 months after age 18 to align with the Supplemental Security Income (SSI) age-18 redetermination process. This process can take significant time, and individuals may otherwise be required to transfer funds into a traditional IRA, creating a countable resource and jeopardizing eligibility. 3. Allow Rollovers from Converted Accounts NABWIS further recommends allowing individuals who previously rolled funds into a traditional IRA to subsequently transfer those funds into an ABLE account if they later become eligible due to disability. This would ensure equitable access to ABLE protections and reflect real-life changes in disability status over time.