To amend the Internal Revenue Code of 1986 to make certain provisions with respect to qualified ABLE programs permanent.
Sponsors
Legislative Progress
IntroducedMr. Smucker (for himself, Mr. Beyer, Mr. Fitzpatrick, Ms. Norton, …
Summary
What This Bill Does
This bill makes permanent two provisions related to ABLE (Achieving a Better Life Experience) accounts that were set to expire in 2026. ABLE accounts are tax-advantaged savings accounts designed to help individuals with disabilities and their families save for disability-related expenses without losing eligibility for federal benefits like Medicaid and SSI.
Who Benefits and How
Individuals with disabilities and their families are the primary beneficiaries. They will be able to continue making higher annual contributions to ABLE accounts beyond the standard limit, and they can roll over funds from 529 college savings plans into ABLE accounts without penalty. This provides greater financial flexibility for people with disabilities to save for housing, education, transportation, healthcare, and other qualified expenses.
Who Bears the Burden and How
There are no significant burden bearers identified. The federal government may see reduced tax revenue due to the continued tax-advantaged status of these contributions, but this represents a policy choice to support Americans with disabilities rather than a burden on specific groups.
Key Provisions
- Permanently extends the ability for ABLE account beneficiaries who work to contribute beyond the annual gift tax exclusion limit (currently $18,000), up to an additional amount equal to their compensation or the federal poverty line, whichever is less
- Permanently allows tax-free rollovers from 529 education savings accounts to ABLE accounts for the same beneficiary or a family member with a disability
- Includes ABLE account contributions in the definition of "qualified retirement savings contributions" for purposes of the Saver's Credit, allowing low-income workers with disabilities to claim a tax credit for their ABLE contributions
- Repeals the sunset provision in the SECURE 2.0 Act of 2022 that would have ended these benefits on January 1, 2026
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
To make certain provisions with respect to qualified ABLE programs permanent.
Policy Domains
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
The sum of contributions made by the eligible individual during such taxable year to the ABLE account, qualified retirement contributions, elective deferrals, and voluntary employee contributions.
The amount of contributions made by the eligible individual during such taxable year to the ABLE account.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology