S. 4498

119 S4498 IS: ABLE Tomorrow Act
 U.S. Senate
 2026-05-12
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  2d Session  S. 4498  IN THE SENATE OF THE UNITED STATES   May 12, 2026   Mr. Moran  (for himself,  Mr. Van Hollen ,  Mr. Tillis , and  Ms. Klobuchar ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to make expiring ABLE provisions permanent, improve accessibility and education for families, and for other purposes.
1.
Short title
This Act may be cited as the   ABLE Tomorrow Act  .
2.
Findings
Congress finds the following:
(1)
People with disabilities are more than two and half times as likely to live in poverty than people without disabilities. In every State, people with disabilities experience higher poverty rates than both the rate for people without disabilities and the overall State poverty rate. Households containing an adult with a disability that limits their ability to work require more income to obtain the same standard of living as similar households without a member with a disability.
(2)
The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 provided for qualified ABLE programs, which provided eligible people with disabilities the opportunity to open tax-advantaged savings accounts which they can use for meeting qualified disability-related expenses without the risk of losing eligibility for certain benefits they need to maintain health, independence, and quality of life.
(3)
Since the establishment of ABLE accounts, legislative changes have been made to increase access to, uptake, and sustainability of the program, including increasing the disability onset age from before age 26 to before age 46 to qualify for an ABLE account, allowing working ABLE account holders to contribute additional amounts to the annual contribution limit, creating a Saver’s credit allowance for ABLE contributions, and allowing for rollovers of 529 accounts.
(4)
As of 2025, there were hundreds of thousands of ABLE accounts open in the United States with several million individuals with disabilities eligible for ABLE accounts. This number is expected to nearly double and as amendments made by the SECURE 2.0 Act of 2022 take effect beginning January 2026.
3.
Purposes
The purposes of this Act are—
(1)
to encourage and assist individuals with disabilities who have fewer resources to save using ABLE accounts;
(2)
to increase uptake and continued utilization of ABLE accounts by people with disabilities, especially those individuals receiving benefits under the Medicaid program established under title XIX of the Social Security Act and the program for supplemental security income benefits established under title XVI of such Act; and
(3)
to help ensure the success and financial stability of ABLE account holders and the whole of the ABLE account program.
4.
Repeal of transfer to State upon death of designated beneficiary
Section 529A(f) of such Code is amended to read as follows:
(f)
Prohibition on State adjustment or recovery of medical assistance
Notwithstanding section 1917(b) of the Social Security Act or any other provision of law, no State may seek adjustment or recovery of any medical assistance correctly paid on behalf of a designated beneficiary under a State Medicaid Plan from the ABLE account of such designated beneficiary, regardless of whether the ABLE account is part of the designated beneficiary’s estate.
 .
5.
Modifications to contribution limitations
(a)
Repeal of limitation on rollovers
Section 529(c)(3)(C)(i) of such Code is amended by striking the matter following subclause (III).
(b)
Exception to contribution limit for certain lump sum payments
(1)
In general
Section 529A(b) of such Code is amended by adding at the end the following new paragraph:
(8)
Exception to contribution limit for certain lump sum payments
(A)
In general
In the case of a contribution to a qualified ABLE program from a third-party trust, a contribution of amounts received by the designated beneficiary as proceeds of a life insurance contract, or an amount distributed from a qualified tuition program (as defined in section 529(b)(1)) that is not includible in gross income of the distributee under section 529(c)(3)(C)(i)(III), subsection (b)(2)(B) shall not apply.
(B)
Limitation
Subparagraph (A) shall not apply with respect to any contribution if such subparagraph has applied to any other contribution in any taxable year to a qualified ABLE program of the qualified beneficiary.
 .
(2)
Conforming amendments
(A)
Section 529A(b)(2)(B) of such Code is amended by inserting  paragraph (8) or  after  Except in the case of contributions under  in the matter preceding clause (i).
(B)
Section 529A(b)(6) is amended by inserting  and any contributions described in paragraph (8)(A)  after  State agency or instrumentality thereof .
6.
Delay of suspension of benefits
Section 103(b)(1) of the Stephen Beck, Jr., ABLE Act of 2014 is amended by inserting  , and the suspension shall begin with the benefits payable for the 1st calendar month that begins after the 2-month period that begins with the date the individual receives notice from the Commissioner of Social Security that the benefits are to be so suspended  before the period.
7.
Protecting working ABLE individuals from losing benefits because of retirement plan rules
(a)
In general
 Section 414  of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(dd)
ABLE account contributions
(1)
In general
An applicable employer plan (as defined in subsection (v)(6)(A)) which is a defined contribution plan shall not be treated as failing to meet any requirement of this title solely because the plan provides that an eligible ABLE individual may elect for a plan year that employer contributions which would otherwise be made under the terms of the plan for such plan year shall (in lieu of contribution to the plan) be contributed by the employer to a qualified ABLE program described in section 529A on behalf of such eligible ABLE individual.
(2)
Treatment of contributions
(A)
No deduction for amounts contributed to ABLE account
Except as provided in subparagraph (B), a contribution to a qualified ABLE program pursuant to an election under paragraph (1) shall not be treated as a contribution to an applicable employer plan.
(B)
Application of nondiscrimination rules
Under rules prescribed by the Secretary, for purposes of applying sections 401(a)(4), 401(k)(3), 401(k)(12), 401(k)(13), 401(m)(2), 403(b)(12), 408(k)(3), 408(p)(2)(A)(iii), 408(p)(2)(B), 410, and 416, contributions made to a qualified ABLE program pursuant to an election under paragraph (1) shall be treated as if such contributions were made to the plan.
(3)
Universal availability
Paragraph (1) shall not apply unless the plan provides that the election described therein is available to all eligible ABLE individuals who are eligible to participate in the plan.
(4)
Cash or deferred arrangement
A plan shall not fail to be treated as including a qualified cash or deferred arrangement described in section 401(k)(1) solely because such plan provides for the election described in paragraph (1).
(5)
Eligible ABLE individual
For purposes of this subsection, the term  eligible ABLE individual  means an employee who, as of the first day of a plan year, is an eligible individual within the meaning of section 529A(e)(1) for the taxable year containing such first day of the plan year.
(6)
Treatment of permissive withdrawals
An eligible ABLE individual may direct amounts eligible for withdrawal from an eligible contribution arrangement pursuant to section 414(w) to be contributed to a qualified ABLE program described in section 529A on behalf of such eligible ABLE individual.
 .
(b)
Treatment as beneficiary contribution
 Section 529A(b)(7)  of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
(B)
Employer contributions
Contributions made to a qualified ABLE program by an employer on behalf of a designated beneficiary described in this paragraph pursuant to paragraph (1) or (6) of section 414(a) shall be treated as made by the designated beneficiary.
 .
(c)
Clarification of availability of employer contributions
 Section 529A(e)  of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(7)
Employer contributions
An employer of an eligible individual may contribute to any qualified ABLE program for which the eligible individual is the designated beneficiary, including through a contribution matching a contribution made by such eligible individual to the qualified ABLE program.
 .
(d)
Deduction for contributions remitted by employer to a qualified ABLE program
Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall—
(1)
amend the regulations under  section 162  of the Internal Revenue Code of 1986 to confirm that contributions made by an employer to a qualified ABLE program described in section 529A of such Code on behalf of an eligible ABLE individual described in section 414(dd)(5) of such Code who is an employee of such employer shall be considered a reasonable allowance for salaries or other compensation for personal service if such contribution for a year, taking into account all other contributions to such qualified ABLE program, does not exceed the maximum contribution described in section 529A(b)(2)(B) of such Code with respect to such individual; and
(2)
update the publications issued for employers to encourage employers offering a retirement plan with automatic enrollment to notify employees who elect not to contribute to the plan and who may be eligible to contribute to a qualified ABLE program to notify such employees of the possibility of a contribution under section 529A(b)(2)(B)(ii) of such Code.
(e)
Effective date
(1)
In general
Except as provided in paragraph (2), the amendments made by this section shall apply to plan and taxable years beginning after the date of the enactment of this Act.
(2)
Clarifications
The amendment made by subsection (c) and the amendments made pursuant to subsection (d)(1) shall apply to plan and taxable years beginning before, on, or after the date of the enactment of this Act.
(f)
Model amendment authority
The Secretary of the Treasury (or such Secretary's delegate) shall promulgate model amendments which plans may adopt to implement contributions to qualified ABLE programs pursuant to the amendments made by this section.
8.
Directing agencies to inform people with disabilities about ABLE accounts
(a)
Social Security Administration
(1)
In general
Beginning 180 days after the date of enactment of this Act, the Commissioner of Social Security shall provide the information described in paragraph (3) to any individual who is receiving any of the following on or after such date:
(A)
A supplemental security income benefit under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq. ).
(B)
A disability insurance benefit under section 223 of the Social Security Act ( 42 U.S.C. 423 ).
(C)
A monthly insurance benefit under section 202 of the Social Security Act ( 42 U.S.C. 402 ) based on such individual's disability (as defined in section 223(d) of such Act ( 42 U.S.C. 423(d) )).
(2)
Provision of information upon redetermination or overpayment
Beginning 180 days after the date of enactment of this Act, the Commissioner of Social Security shall, in addition to providing the information described in paragraph (3) in accordance with paragraph (1), provide such information to any individual receiving a benefit described in paragraph (1)—
(A)
whenever such individual's eligibility for such benefit is redetermined; and
(B)
whenever such individual is found to have received an overpayment of such benefits due to the individual having resources that exceed the amount established under subparagraph (A) or (B) of section 1611(a)(3) of the Social Security Act ( 42 U.S.C. 1382(a)(3) ), as applicable to the individual.
(3)
Information on ABLE accounts
The information described in this paragraph is the following:
(A)
Information on the existence of—
(i)
qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(ii)
resources for people with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today.
(B)
Instructions on how to open an ABLE account (as defined in  section 529A  of the Internal Revenue Code of 1986).
(b)
Department of Veterans Affairs
(1)
In general
 Chapter 63  of title 38, United States Code, is amended by adding at the end the following new section:
6321.
ABLE programs
(a)
In general
The Secretary shall inform each veteran and eligible dependent who participates in or receives benefits or services through a program carried out under the laws administered by the Secretary about the existence of qualified ABLE programs and resources for people with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today, at the time such veteran or eligible dependent first participates in or receives such benefit or service through such program.
(b)
Definitions
In this section:
(1)
Eligible dependent
The term  eligible dependent  has the meaning given that term in section 6301(b) of this title.
(2)
Qualified ABLE program
The term  qualified ABLE program  has the meaning given that term in  section 529A  of the Internal Revenue Code of 1986.
 .
(2)
Clerical amendment
The table of sections at the beginning of chapter 63 of such title is amended by adding at the end the following new item:
6321. ABLE programs.
  .
(c)
Department of Housing and Urban Development
(1)
Definition
In this subsection, the term  covered housing program  means—
(A)
the program for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 8013 ); and
(B)
the tenant-based assistance program under section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ).
(2)
Requirement
The Secretary of Housing and Urban Development shall ensure that when a family or an individual enrolls in a covered housing program or otherwise begins to occupy housing assisted by a covered housing program, the family or individual is informed about—
(A)
the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(B)
resources for people with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today.
(d)
Chapter 85 of title 41, United states code
Section 8503(d) of title 41, United States Code, is amended—
(1)
in paragraph (1), by striking  and  at the end;
(2)
in paragraph (2), by striking the period at the end and inserting  ; and ; and
(3)
by adding at the end the following:
(3)
shall provide regulations providing that, when a qualified nonprofit agency that produces a product or services for the Federal Government under subsection (c) enrolls an individual in a program to produce the product or services, the agency shall inform the individual about—
(A)
the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(B)
resources for people with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today.
 .
(e)
State Medicaid and CHIP agencies
(1)
Medicaid
Section 1902(a) of the Social Security Act ( 42 U.S.C. 1396a(a) ) is amended—
(A)
in paragraph (88), by striking  ; and  and inserting a semicolon;
(B)
in paragraph (89), by striking the period at the end and inserting  ; and ; and
(C)
by inserting after paragraph (89) the following new paragraph:
(90)
provide that the State will inform any individual who enrolls for medical assistance under the State plan (or under a waiver of such plan) about the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986, and resources for people with disabilities, such as the ABLE National Resources Center, the National Association of State Treasurers, and ABLE Today, when they first enroll for such assistance.
 .
(2)
CHIP
Section 2107(e)(1) of the Social Security Act ( 42 U.S.C. 1397gg(e)(1) ) is amended—
(A)
by redesignating subparagraphs (I) through (W) as subparagraphs (J) through (X), respectively; and
(B)
by inserting after subparagraph (H) the following new subparagraph:
(I)
Section 1902(a)(90) (relating to the provision of information about ABLE accounts to individuals when they first enroll for medical assistance).
 .
(3)
Effective date
The amendments made by this subsection shall take effect on the date that is 180 days after the date of enactment of this Act.
(f)
State TANF agencies
(1)
In general
Section 408(a) of the Social Security Act ( 42 U.S.C. 608(a) ) is amended by adding at the end the following new paragraph:
(13)
State requirement to provide information about ABLE accounts
Beginning 180 days after the date of enactment of the ABLE Awareness Act, a State to which a grant is made under section 403 shall provide information about the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986, and resources for people with disabilities, such as the ABLE National Resources Center, the National Association of State Treasurers, and ABLE Today, to any family receiving or applying for assistance under such grant.
 .
(2)
State plan requirement
Section 402(a)(1)(B) of the Social Security Act ( 42 U.S.C. 602(a)(1)(B) ) is amended by adding at the end the following new clause:
(vi)
The document shall include information about how the State will provide information about qualified ABLE programs to individuals as required under section 408(a)(13).
 .
(g)
Nutrition assistance programs
Each State shall inform people with disabilities (as defined in section 3 of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12102 )) about the existence of qualified ABLE programs (as defined in  section 529A  of the Internal Revenue Code of 1986), and resources for people with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today, on enrollment in any means-tested nutrition assistance program of the Department of Agriculture or the Department of Defense, including—
(1)
the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ); and
(2)
the special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 ( 42 U.S.C. 1786 ).
(h)
Rehabilitation Act of 1973
Section 101(a) of the Rehabilitation Act of 1973 ( 29 U.S.C. 721(a) ) is amended by adding at the end the following:
(27)
Information on ABLE programs
The State plan shall provide that, when an individual with a disability (as defined in section 7(20)(A)) enrolls in a vocational rehabilitation program, the designated State unit shall inform the person about—
(A)
the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(B)
resources for individuals with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today.
 .
(i)
Medicare
Beginning 180 days after the date of enactment of this Act, the Secretary of Health and Human Services shall provide the information described in subsection (a)(3)(A) to any individual entitled to benefits under title XVIII of the Social Security Act ( 42 U.S.C. 1395 et seq. ) by reason of section 1811(2) of such Act ( 42 U.S.C. 1395c(2) ) at the time such individual becomes entitled to such benefits.
(j)
Head Start Act
(1)
Head Start programs
Section 642(b) of the Head Start Act ( 42 U.S.C. 9837(b) ) is amended by adding at the end the following:
(17)
When a child is enrolled by the Head Start agency, inform the child's family about—
(A)
the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(B)
resources for individuals with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today.
 .
(2)
Early Head Start programs
Section 645A(b) of the Head Start Act ( 42 U.S.C. 9840a(b) ) is amended—
(A)
by redesignating paragraph (12) as paragraph (13); and
(B)
by inserting after paragraph (11) the following:
(12)
when a child is enrolled by the entity, inform the child's family about—
(A)
the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(B)
resources for individuals with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today; and
 .
(k)
Individuals with Disabilities Act
(1)
In general
Section 612(a) of the Individuals with Disabilities Education Act ( 20 U.S.C. 1412(a) ) is amended by adding at the end the following:
(26)
Information on ABLE programs
The parents of each child receiving special education and related services under this part or early intervening services under section 613(f) are provided with information regarding—
(A)
the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(B)
resources for individuals with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today.
 .
(2)
Infants and toddlers with disabilities program
Section 635(a) of the Individuals with Disabilities Education Act ( 20 U.S.C. 1435(a) ) is amended by adding at the end the following:
(17)
Policies and procedures to ensure that the parents of each infant or toddler with a disability who receives early intervention services under this part are provided with information regarding—
(A)
the existence of qualified ABLE programs as defined in  section 529A  of the Internal Revenue Code of 1986; and
(B)
resources for individuals with disabilities, such as the ABLE National Resource Center, the National Association of State Treasurers, and ABLE Today.
 .
9.
ABLE awareness grants
(a)
In general
The Secretary may award grants to eligible entities for the purposes of promoting the availability of ABLE programs and their benefits and encouraging the establishment of ABLE accounts for eligible individuals.
(b)
Eligible entity
For purposes of this section, the term  eligible entity  means—
(1)
any State, or any agency or instrumentality thereof;
(2)
an Indian tribal government or any subdivision thereof; or
(3)
any consortium of entities described in paragraph (1) or (2).
(c)
Awarding grants
(1)
Application
An eligible entity desiring a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing or accompanied by such information, as the Secretary may reasonably require.
(2)
Data collection and reporting
The Secretary may not award a grant under this section unless the eligible entity agrees to collect data on the number of ABLE accounts established as a result of activities carried out with the grant funds.
(d)
Use of funds
(1)
In general
An eligible entity receiving a grant under this section shall use the grant to increase awareness of ABLE accounts and to provide information on how to enroll in such accounts.
(2)
Activities
An eligible entity may use a grant under this section for—
(A)
media buys;
(B)
conferences, meetings, canvassing, and recruitment; and
(C)
other activities to promote the availability and establishment of ABLE accounts.
(e)
Other terms
For purposes of this section:
(1)
ABLE program; ABLE account; eligible individual
The terms  ABLE program ,  ABLE account , and  eligible individual  have the respective meaning given such terms under  section 529A  of the Internal Revenue Code of 1986.
(2)
Secretary
The term  Secretary  means the Secretary of the Treasury or the Secretary's delegate.
(3)
State
The term  State  includes any territory or possession of the United States.
(f)
Authorization of appropriations
There is authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2027 through 2031.