February 19, 2025
Mr. Schmitt (for himself, Mr. Van Hollen, Mr. Boozman, Mr. Tuberville, Mr. Kaine, Mrs. Britt, Ms. Klobuchar, Mr. Coons, Mr. Moran, Mr. Tillis, Mr. Fetterman, Mr. Warnock, Mr. Sullivan, and Mr. Kelly) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to make certain provisions with respect to qualified ABLE programs permanent.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Ensuring Nationwide Access to a Better Life Experience Act
or the ENABLE Act
.
Sec. 2. Permanent extension of increased contributions to ABLE accounts
(a) In general
Section 529A(b)(2)(B)(ii) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2026
.
(b) Allowance of savers credit
(1) In general
Section 25B(d)(1) of the Internal Revenue Code of 1986 is amended to read as follows:
(1) In general
The term
qualified retirement savings contributionsmeans, with respect to any taxable year, the sum of—(A)
the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the eligible beneficiary, and
(B)
in the case of any taxable year beginning before January 1, 2027—
(i)
the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,
(ii)
the amount of—
(I)
any elective deferrals (as defined in section 402(g)(3)) of such individual, and
(II)
any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and
(iii)
the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).
(2) Coordination with SECURE 2.0 Act of 2022 amendment
Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted.
(c) Effective date
The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
Sec. 3. Permanent extension of rollovers to ABLE programs from 529 programs
(a) In general
Section 529(c)(3)(C)(i)(III) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2026,
.
(b) Effective date
The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.