ABLE MATCH (Making Able a Tool to Combat Hardship) Act
- Bill Number
- S. 4492
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-12: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-06-10T11:03:26Z
AI-Generated Summary
Summary of S. 4492: ABLE MATCH Act
Purpose
This legislation aims to encourage savings in ABLE accounts—tax-advantaged savings accounts for individuals with disabilities—by offering government matching payments for contributions made by eligible account holders. It also requires demographic data collection on account users and provides funding for state-level promotion efforts.
Key Provisions
- Matching Payments for Contributions: Eligible individuals receive a 100% match on qualified contributions to their ABLE account, up to $2,000 per year. The match is deposited directly into the account after filing a tax return, or treated as a refundable credit in limited cases.
- Income-Based Phaseout: The match percentage decreases gradually for higher earners, starting at modified adjusted gross income levels of $56,000 for joint filers, $42,000 for heads of household, and $28,000 for others. The phaseout range spans an additional $20,000 in income.
- Qualified Contributions and Adjustments: Matches apply only to personal contributions (not prior matches or certain distributions). Contributions are reduced by recent withdrawals from the account, with exceptions for qualified disability expenses. Inflation adjustments begin after 2027.
- Demographic Reporting: ABLE programs must include data on race, gender, and disability type in annual reports to the Treasury Department.
- State Grants: Authorizes $5 million annually from 2027 to 2030 for states to promote ABLE accounts and the matching program.
- Coordination Rules: Prevents overlap with the savers' credit; includes protections against erroneous payments and offsets for debts.
Significant Changes to Existing Law
- Adds new Internal Revenue Code section 6433A to create a federal matching contribution program for ABLE accounts, modeled partly on existing tax credits but paid directly into accounts.
- Amends section 529A to require demographic reporting on ABLE account beneficiaries.
- Updates related tax code sections (such as 25B, 6211, and 1324) to integrate the new match with existing credits and payment authorities.
- Extends similar benefits to U.S. territories through direct payments or plans, treating them equivalently to refunds under federal law.
Potential Impacts
- On Government Agencies: The Treasury Department and IRS would administer the matches, process claims, handle erroneous payments, and collect new demographic data. States could receive grants and implement promotion programs, with territories receiving compensatory payments.
- On Citizens: Individuals with disabilities who contribute to ABLE accounts could receive up to $2,000 in annual matches, potentially increasing savings for disability-related expenses, though subject to income limits and contribution rules.
- On International Relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Individuals with disabilities who are designated beneficiaries of ABLE accounts and make contributions.
- State governments and U.S. territories, which may receive grants or payments and handle promotion or distribution.
- The Treasury Department and IRS, responsible for program administration and reporting.
- Families or guardians managing ABLE accounts on behalf of beneficiaries.
Notable Legal, Constitutional, or Political Implications
- The matching payment functions as a direct government contribution tied to tax filing, with rules treating erroneous payments as tax underpayments but exempting them from certain penalties.
- Includes an opt-out election and protections against offsets for federal debts, which may raise questions about equitable access.
- Requires new data collection on race, gender, and disability type, potentially affecting privacy considerations in tax administration.
- The legislation applies only to taxable years after December 31, 2026, allowing time for implementation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (7)
Sen. Moran, Jerry [R-KS], Sen. Klobuchar, Amy [D-MN], Sen. Tillis, Thomas [R-NC], Sen. Fetterman, John [D-PA], Sen. Duckworth, Tammy [D-IL], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Sanders, Bernard [I-VT]
Recent Actions
- 2026-05-12: Read twice and referred to the Committee on Finance.
- 2026-05-12: Introduced in Senate
Bill Versions
- ABLE MATCH (Making Able a Tool to Combat Hardship) Act — issued 2026-05-12 — PDF (12 pages)