Why It Matters
Achieving a Better Life Experience (ABLE) accounts, also known as 529A accounts, are tax-free savings programs. Established in 2014, these accounts allow disabled individuals to save money without jeopardizing eligibility for critical programs, such as Medicaid and Supplemental Security Income (SSI).
Key ABLE account provisions are set to expire in 2025. These provisions help people with disabilities save for essential expenses (housing, transportation, assistive technology, etc.) without risking vital benefits.
What the Bill Does
The Ensuring Nationwide Achieving a Better Life Experience (ENABLE) Act would permanently extend key ABLE provisions, ensuring that people with disabilities can continue to build financial security. Without this bill, individuals may lose access to these tools, forcing greater reliance on federal benefits.
Key Provisions the ENABLE Act Extends:
1. ABLE to Work
- Allows employed, disabled individuals to contribute extra funds beyond the standard ABLE account limit.
- This additional contribution is capped at either the previous year’s federal poverty level for a one-person household ($15,060 in 2024), or the beneficiary’s annual earnings, whichever is lower.
2. ABLE Saver’s Credit
- Provides a non-refundable tax credit of up to $1,000 for ABLE account contributions, encouraging long-term saving.
3. 529 Education Savings to ABLE Rollovers
- Enables tax-free transfers of funds from 529 education savings accounts into ABLE accounts, as long as the rollover amount does not exceed the annual ABLE contribution limit.
We urge you to co-sponsor and pass the ENABLE Act to ensure your constituents with disabilities can continue to save and build financial security.
To learn more and co-sponsor this bill, please contact:
Alex Thiessen (Office of Senator Eric Schmitt): Alex_Thiessen@Schmitt.Senate.Gov
Chaston Pfingston (Office of Representative Lloyd Smucker): Chaston.Pfingston@Mail.House.Gov
