HB251 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ken Johnson
Republican
Session: Regular Session 2018
Title: Wallace-Folsom Savings Investment Plan, certain contributions to savings accounts by guardians and conservators, authorized, Sec. 16-33C-25 am'd.
Summary: HB 251 lets guardians or conservators contribute to ABLE or ACES savings accounts for designated beneficiaries and updates Alabama law to align with IRS Section 529 amendments as part of the Wallace-Folsom Savings Investment Plan.
What This Bill Does
It authorizes guardians or conservators to contribute to ABLE or ACES savings accounts for a designated beneficiary and to continue investing in those accounts. It clarifies that such contributions and investments are permitted for all purposes under state law. It also updates and aligns the law with recent IRS 529 amendments and maintains the Wallace-Folsom plan structure (ABLE, ACES, and PACT) with related funds and administration.

Who It Affects
Guardians or conservators of designated beneficiaries: can make contributions to ABLE/ACES accounts and continue investments on behalf of the beneficiary.
Designated beneficiaries and their families: potential for expanded funding and use of ABLE/ACES accounts to cover disability-related expenses and higher education costs.

Key Provisions
Authorizes a guardian or conservator of a designated beneficiary to contribute to and continue investing in ABLE or ACES savings accounts for the beneficiary.
Conforms Sections 16-33C-1, 16-33C-3, 16-33C-10, and 16-33C-25 to recent amendments to Section 529 of the Internal Revenue Code.
Affirms that the Wallace-Folsom Savings Investment Plan includes the ABLE Program, ACES Program, and PACT Program.
Creates and administers the ACES Trust Fund, ABLE Trust Fund, ACES Administrative Fund, ABLE Administrative Fund, and related funds, and assigns governance and administrative roles.
Provides liability protection for Savings Board members and investment managers when acting under the standard of care.
States that ABLE and ACES assets are used solely for program purposes and are not state debt, and requires data for tax reporting (e.g., Social Security numbers as needed).
Effective immediately upon the Governor's signature.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Education