Senate Unanimously Passes ABLE Account Permanency Bill

The ENABLE Act, a bill that makes permanent three provisions of the ABLE account law, passed the Senate under a unanimous consent agreement on September 19. The bill, the ENABLE Act, was introduced in the Senate by Sen. Bob Casey (D-PA), the author of the original ABLE Act, and Sen. Eric Schmitt (R-MO) and in the House by Rep. Lloyd Smucker (R-PA) and Rep. Don Beyer (D-VA).

It would:

• Allow a person with a disability who is employed to contribute an additional amount to his or her ABLE account. This additional contribution could not exceed either the prior year’s federal poverty level for a one-person household ($15,060 in 2024), or the beneficiary’s yearly compensation.
• Qualify a person with a disability who makes qualified contributions to their ABLE account for a nonrefundable saver’s credit of up to $1,000.
• Permit a rollover of a 529 educational savings account to an ABLE account. The rollover would be limited to funds that are less than or equal to the annual tax-free ABLE account contribution limit.

Encourage your Representative to cosponsor the House version of the ENABLE Act.

Prospects: The ENABLE Act will be in play in the 2025 tax bill, if it is not enacted during the November-December lame duck session of the 118^th Congress. It has considerable bipartisan support and may find its way into the year-end government funding bill, especially if that bill turns out to have a tax title in it, or travel on its own, given the Senate agreement.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.