ABLE Account Proposed Legislation

The office of Senator Bob Casey of Pennsylvania has introduced some legislation in 2024 that should make permanent some ABLE account functions. In today’s political environment, there are no guarantees with legislation being passed. However, we have seen many positive changes withthe ABLE in the past couple of years due to the tax neutral consequences of the updates.

The ENABLE Act serves as a legislative requirement to continue meaningful functions of any ABLE account. ENABLE stands for (because why not continue the acronym game) Ensuring Nationwide Access to a Better Life Experience.

The provisions within the legislations were originally part of a tax legislation that is scheduled to expire the last day of 2025. Three updates are currently listed on the ENABLE Act:

1.     Make permanent the ability for working beneficiaries to contribute to their own ABLE account through the ABLE to Work contribution. This contribution allows the beneficiary to add over and above the annual contribution limit of $18,000 for 2024. That additional contribution for 2024 is $15,060.

2.     Make permanent the ability for a beneficiary’s contributions to an ABLE to count towards a Saver’s Credit, up to $1,000.

3.     Make permanent the ability for a 529 balance to be rolled into an ABLE account when the beneficiary is the same. These rollovers are limited the annual contribution limit.

Co-sponsors of the bill already include Senators John Boozman of Arkansas, Chris Van Hollen of Maryland, Peter Welch of Vermont, Tim Kaine of Virginia, Tommy Tuberville of Alabama, Amy Klobuchar of Minnesota, and Mark Wayne Mullen of Oklahoma.

As advocate families, please reach out to your local representatives to share your support of these helpful provisions that allow ABLE accounts to be successful tools of financial security and autonomy for people with disabilities.

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