NC S763

Allows funds rolled over from a parental savings trust fund (established under G.S. 116-209.25) to an ABLE account to be excluded from taxable income without penalty.

Modifies G.S. 105-153.5(c)(7) to permit penalty-free withdrawals from the Parental Savings Trust Fund when funds are rolled over to an ABLE account, in addition to existing death or permanent disability exceptions.

Requires the ABLE Program Board of Trustees to submit a report by December 1, 2018 to the Joint Legislative Oversight Committees on Health and Human Services and General Government with legislative recommendations for modifications to the ABLE Program.

Board report must address recent federal law changes and recommendations for improvements to program administration, consistent with the federal ABLE Act.

Section 1 is effective for taxable years beginning on or after January 1, 2018; remainder of the act is effective upon passage.