ENABLE Act
- Bill Number
- H.R. 1436
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-02-18: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-07T08:05:31Z
AI-Generated Summary
Purpose
The ENABLE Act (H.R. 1436) aims to provide long-term financial support for individuals with disabilities by making temporary tax benefits for ABLE accounts (Achieving a Better Life Experience accounts—tax-advantaged savings plans for disability-related expenses) permanent. These changes encourage greater savings and flexibility without time limits.
Key Provisions
- Short Title: The bill is titled the "Ensuring Nationwide Access to a Better Life Experience Act" or "ENABLE Act."
- Permanent Increase in ABLE Contributions (Section 2):
- Removes the expiration date (January 1, 2026) for higher annual contribution limits to ABLE accounts, allowing contributions up to the gift tax exclusion amount (currently aligned with annual limits, such as $18,000 for 2024, with additional employment-based contributions).
- Expands the Saver's Credit (a tax credit for low- and moderate-income individuals saving for retirement) to permanently include contributions to ABLE accounts as "qualified retirement savings contributions."
- Repeals a conflicting provision from the SECURE 2.0 Act of 2022 to ensure consistency.
- Applies to tax years ending after the bill's enactment.
- Permanent Rollovers from 529 Plans to ABLE Accounts (Section 3):
- Removes the expiration date (January 1, 2026) for tax-free rollovers from 529 college savings plans (tax-advantaged accounts for education expenses) to ABLE accounts.
- Applies to distributions made after the bill's enactment.
Significant Changes to Existing Law
- Extension of Temporary Rules: Prior to this bill, enhanced ABLE contribution limits (allowing up to the full gift tax exclusion plus employment income contributions) and 529-to-ABLE rollovers were set to expire on December 31, 2025. The bill eliminates these deadlines, embedding the rules permanently into the Internal Revenue Code of 1986.
- Saver's Credit Modification: Previously temporary inclusion of ABLE contributions in the Saver's Credit is made permanent, broadening access to this incentive beyond traditional retirement accounts. The repeal of the SECURE 2.0 provision resolves potential overlaps or conflicts in tax treatment.
- These changes simplify the tax code by avoiding future legislative renewals and align ABLE accounts more closely with other savings vehicles like 529 plans.
Potential Impacts
- On Citizens: Individuals with disabilities (and their families or contributors) gain ongoing access to higher savings limits and easier fund transfers from education plans, potentially increasing financial security for disability-related costs like housing, transportation, and healthcare without tax penalties. Low-income savers may benefit from the enhanced Saver's Credit, reducing their tax burden.
- On Government Agencies: The Internal Revenue Service (IRS) will need to update forms, guidance, and enforcement for permanent rules, possibly reducing administrative burdens from temporary extensions. No direct impact on international relations.
- Broader Effects: Promotes financial inclusion for about 7 million working-age Americans with disabilities, potentially lowering reliance on public assistance programs over time.
Main Stakeholders Affected
- Primary Beneficiaries: People with disabilities (eligible for ABLE accounts due to blindness or significant disabilities before age 26 or 46, depending on state rules), their families, and employed individuals contributing via payroll.
- Financial Institutions: Banks and investment firms offering ABLE or 529 accounts, which may see increased participation and management fees.
- Government Entities: IRS (for tax administration) and state agencies managing ABLE programs (as contributions flow through state-sponsored plans).
- Low- and Moderate-Income Taxpayers: Eligible for the Saver's Credit, potentially including non-disabled family members contributing to ABLE accounts.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens the tax framework for disability savings under Section 529A of the Internal Revenue Code, ensuring predictability without frequent congressional action. No challenges to enforceability, as it builds on existing ABLE provisions from the 2014 law.
- Constitutional Implications: None significant; the bill involves fiscal policy (tax incentives) within Congress's taxing and spending powers under Article I, Section 8, and does not infringe on individual rights.
- Political Implications: Bipartisan support (introduced by members from both parties) highlights consensus on disability policy. It may set a precedent for permanency in other temporary tax benefits, influencing future budget and tax reform debates, but avoids major revenue losses (estimated under $100 million annually per Congressional Budget Office analogs).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (23)
Rep. Beyer, Donald S. [D-VA-8], Rep. Fitzpatrick, Brian K. [R-PA-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Stauber, Pete [R-MN-8], Rep. Rogers, Mike D. [R-AL-3], Rep. Foster, Bill [D-IL-11], Rep. Miller, Carol D. [R-WV-1], Rep. Neguse, Joe [D-CO-2], Rep. Schmidt, Derek [R-KS-2], Rep. Murphy, Gregory F. [R-NC-3], Rep. Davids, Sharice [D-KS-3], Rep. Raskin, Jamie [D-MD-8], Rep. Dingell, Debbie [D-MI-6], Rep. Wittman, Robert J. [R-VA-1], Rep. Magaziner, Seth [D-RI-2], Rep. Taylor, David J. [R-OH-2], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Carey, Mike [R-OH-15], Rep. Barr, Andy [R-KY-6], Rep. Landsman, Greg [D-OH-1], Rep. Davidson, Warren [R-OH-8], Rep. McBride, Sarah [D-DE-At Large], Rep. Scholten, Hillary J. [D-MI-3]
Recent Actions
- 2025-02-18: Referred to the House Committee on Ways and Means.
- 2025-02-18: Introduced in House
- 2025-02-18: Introduced in House
Bill Versions
- Ensuring Nationwide Access to a Better Life Experience Act — issued 2025-02-18 — PDF (4 pages)