On February 19, 2025, U.S. Senators Katie Britt and Eric Schmitt introduced the Ensuring Nationwide Access to a Better Life Experience (ENABLE) Act, Senate Bill 627. This bill aims to make permanent key provisions of ABLE accounts that are currently set to expire. If passed, it would provide individuals with disabilities and their families additional opportunities to save and invest in an ABLE account.
What are the ABLE provisions that are set to expire on December 31, 2025?
ABLE accounts, established under the Achieving a Better Life Experience (ABLE) Act of 2014, allow individuals with disabilities to save money without jeopardizing their eligibility for essential government benefits, such as Medicaid and Supplemental Security Income (SSI). However, some provisions within the ABLE tax code are set to expire on December 31, 2025.
The ENABLE Act seeks to remove these expiration dates by making the following provisions permanent:
- Increased Contributions to ABLE Accounts
Currently, under the ABLE to Work Act, working account holders who do not participate in an employer-sponsored retirement plan may contribute above the annual standard contribution limit. - 529 College Savings Plan Rollovers
This provision allows rollovers from 529 college savings plans to ABLE accounts. This means families who originally saved for a child’s education but later determined that they might not be able to attend could transfer those funds into an ABLE account without tax penalties. - Savers Credit for ABLE Account Contributions
The bill also would solidify access to the Savers Credit, a federal tax credit designed to encourage low- and middle-income individuals to save for retirement. Under the ENABLE Act, ABLE account contributions would be considered eligible for this credit, providing an additional incentive for individuals with disabilities to save for the future.
House Companion Bill: H.R. 1436
In parallel with the Senate’s introduction of the ENABLE Act, a companion bill, H.R. 1436, was introduced in the House of Representatives on February 18, 2025, by Representative Lloyd Smucker (R-PA-11). This bipartisan bill shares the same objective of making certain provisions of qualified ABLE programs permanent. As of its introduction, H.R. 1436 has been referred to the House Committee on Ways and Means and has garnered support from several cosponsors across party lines.
Next Steps and How to Stay Informed
Both the Senate and House bills represent significant steps toward securing the future of ABLE accounts. As these bills progress through the legislative process, stakeholders and interested parties are encouraged to stay informed and engage with their representatives to express support.
To track the progress of the ENABLE Act and its companion bill:
- Senate Bill (ENABLE Act): Visit the Congress.gov page for S.627 for updates on actions, cosponsors, and related information.
- House Bill (H.R. 1436): Access the Congress.gov page for H.R. 1436 to monitor its status and developments.
To stay updated on the progress of the ENABLE Act and its potential impact on ABLE accounts, consider the following resources:
- Read the full press release from Senator Katie Britt here.
- View or track the bill’s progress through Congress.gov.
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