Bipartisan ENABLE Act Would Extend Expiring Provisions of the ABLE Program

Bipartisan ENABLE Act Would Extend Expiring Provisions of the ABLE Program

U.S. Senators Bob Casey (D-PA) and Eric Schmitt (R-MO) introduced the Ensuring Nationwide Access to a Better Life Experience (ENABLE) Act earlier this year. As of September 20, 2024, the bill has unanimously passed the Senate.

What to Know About The Enable Act

The ENABLE Act aims to extend three key provisions of the Achieving a Better Life Experience (ABLE) program, which expire in 2025, and make them a permanent part of the law. The ABLE program, which Casey created in 2014, allows people with disabilities and their families to maintain tax-free savings accounts that do not adversely affect their eligibility for means-tested public assistance programs such as Medicaid and Supplemental Security Income (SSI). Through ABLE accounts, individuals with disabilities can save for future needs without jeopardizing their access to critical federal assistance programs.

The three provisions of The ENABLE Act set to expire in 2025 are as follows:

  • ABLE to Work – Under this provision, persons with disabilities who are employed can contribute an additional amount to their ABLE accounts. The additional amount cannot be more than:
    • The previous year’s federal poverty level for a one-person household ($15,060 in 2024); or
    • The individual’s yearly compensation.
  • ABLE Saver’s Credit – This provision allows persons with disabilities who contribute to their ABLE accounts to qualify for a nonrefundable saver’s credit of up to $1,000.
  • 529 to ABLE Rollover – Individuals with disabilities can rollover funds from a 529 education savings account to an ABLE account that are less than or equal to the annual ABLE contribution limit without those funds being subject to income taxes.

Casey also sponsored the ABLE Age Adjustment Act, which passed in December 2022. Under that Act, people who acquired their disabilities before age 46 will become eligible to have ABLE accounts rather than the current age of 26. The ABLE Age Adjustment Act goes into effect in 2026 and will expand ABLE eligibility to an estimated 6.2 additional Americans, including over one million veterans.

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