Form 1099-QA: ABLE Account Distributions

An ABLE account is a tax-advantaged account for a person with a disability. The name stands for Achieving a Better Life Experience. If money came out of the account in a year, the program may send you Form 1099-QA. The form reports the distributions for that calendar year.

This guide explains the form in plain words. It is general information. Whether any amount is taxable depends on how the money was used.

What the form reports

Box 1 shows the gross distribution. This is the total paid out of the account in the year. It includes money used for qualified disability expenses and money used for other purposes. It also includes money the beneficiary plans to roll over to another ABLE account. It does not include program-to-program transfers. A return of excess contributions plus earnings is also part of the gross distribution.

The boxes

Box 1: The gross distribution paid out in the year.
Box 2: The earnings part of the gross distribution in box 1.
Box 3: Your basis in the gross distribution reported in box 1.
Box 4: Checked if a program-to-program transfer was made from this ABLE account to another ABLE account.
Box 5: Checked if the ABLE account was terminated in the calendar year reported.
Box 6: Checked if you are not the designated beneficiary. The designated beneficiary is the person named when the account was created.

The form may show only the last four digits of your taxpayer number. The program has reported your full number to the IRS.

When a distribution is generally not taxed

Generally, amounts used to pay for qualified disability expenses are not included in income. Amounts rolled over to another ABLE account within 60 days are not included in income either. The form instructions say these are the usual cases.

When it may be taxable

Taxable amounts are reported as "Other income" on Form 1040 or Form 1040-SR. The instructions also say to see Form 5329 and its separate instructions. Box 6 adds a warning. If you are not the designated beneficiary, you or the designated beneficiary may be subject to additional taxes or penalties on the box 1 gross distribution.

Why box 3 matters

Box 3 is your basis in the distribution. It helps you figure how much of the distribution is taxable. Compare box 1, box 2, and box 3 with your own account statements before you file.

Check the form against your statements

Program statements and the form should match. Compare box 1 with the total distributions shown on your account statements for the year. If a box seems wrong, ask the ABLE program for a corrected form. A corrected copy is marked CORRECTED at the top. Keep the statements with the form.

Keep records of how the money was used

If a distribution is not taxed because it paid for disability expenses, keep the receipts or invoices for those expenses. If you moved money to another ABLE account, keep the statements that show the rollover and its date. These records help you answer questions later.

ABLE accounts and 529 plans have different rules, but both use a Form 1099 for distributions. For that form, read Form 1099-Q and 529 Plan Withdrawals: The Basics.

A simple example

Suppose a family paid for a disability expense from an ABLE account, and the account also paid out some earnings. The form shows the total in box 1, the earnings in box 2, and the basis in box 3. The family keeps the receipts for the expense. This example is made up to show the process. The result depends on the facts.

Next steps

Find the Form 1099-QA and your account statements. Keep receipts for disability expenses and records of any rollover. Then read the form instructions and Form 5329 if box 1 includes amounts that may not be used for qualified expenses.

Sources: Sources: IRS, Form 1099-QA (Rev. April 2025) and Instructions for Recipient printed on the form (https://www.irs.gov/pub/irs-pdf/f1099qa.pdf) This is general information, not advice about your specific return.

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