California ~ Corporate, Personal Income Taxes: ABLE Account Legislation Enacted

California Gov. Edmund G. Brown, Jr., has signed two bills that generally conform California law to the federal tax treatment of Achieving a Better Life Experience (ABLE) accounts for corporation franchise and income and personal income tax purposes. The bills apply to taxable years beginning on or after January 1, 2016. Contributions to ABLE accounts must be made in cash and are not deductible for California purposes. The additional federal contribution, rollover, and distribution rules generally apply, except that any ABLE distribution that is includible in income is subject to an additional 2.5% tax for California purposes (instead of the 10% additional tax that is imposed for federal purposes), unless the distribution is made after the death of the designated beneficiary. A copy of the report that each officer or employee having control of the qualified ABLE program is required to file for federal purposes with respect to contributions, distributions, the return of excess contributions, and other matters required by the U.S. Treasury are also required to be filed with the Franchise Tax Board at the same time and in the same manner.

S.B. 324, Laws 2015, effective January 1, 2016, applicable as noted; A.B. 449, Laws 2015, effective January 1, 2016, applicable as noted

 

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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