26 Ways the GOP’s Tax Reform Will Affect Your Wallet

25. Expanded ABLE Accounts

The law expands the uses of these tax-advantaged accounts, which allow families to put aside up to $14,000 a year to cover expenses for a beneficiary with special needs. The money can be used tax-free for most expenses, and account assets of up to $100,000 don’t count toward the $2,000 limit for Supplemental Social Security Income benefits. Under the new law, ABLE beneficiaries will be allowed to contribute their own earnings to the account once the $14,000 contribution limit for gifts by others has been reached.

The law also allows parents and others who established a 529 plan for a disabled beneficiary to roll the money into an ABLE account for that individual. However, the rollover would count towards the $14,000 annual contribution limit. 27. Relief for Some 401(k) Plan Borrowers

The new law would give employees who borrow from their 401(k) plans more time to repay the loan if they lose their jobs or their plan is terminated. Currently, borrowers who leave their jobs are usually required to repay the balance in 60 days to avoid having the amount outstanding treated as a taxable distribution. Under the new law, they will have until the due date of their tax return for the year they left the job.