Modifications to contribution limitations

(a) Repeal of limitation on rollovers Section 529(c)(3)(C)(i) of such Code is amended by striking the matter following subclause (III). (b) Exception to contribution limit for certain lump sum payments (1) In general Section 529A(b) of such Code is amended by adding at the end the following new paragraph: (8) Exception to contribution limit for certain lump sum payments (A) In general In the case of a contribution to a qualified ABLE program from a third-party trust, a contribution of amounts received by the designated beneficiary as proceeds of a life insurance contract, or an amount distributed from a qualified tuition program (as defined in section 529(b)(1)) that is not includible in gross income of the distributee under section 529(c)(3)(C)(i)(III), subsection (b)(2)(B) shall not apply. (B) Limitation Subparagraph (A) shall not apply with respect to any contribution if such subparagraph has applied to any other contribution in any taxable year to a qualified ABLE program of the qualified beneficiary.. (2) Conforming amendments (A) Section 529A(b)(2)(B) of such Code is amended by inserting paragraph (8) or after Except in the case of contributions under in the matter preceding clause (i). (B) Section 529A(b)(6) is amended by inserting and any contributions described in paragraph (8)(A) after State agency or instrumentality thereof.