Springfield Standard

Today, Senator Eric Schmitt’s Ensuring Nationwide Access to Better Life Experience (ENABLE) Act passed the United States Senate. The ENABLE Act extends several provisions relating to ABLE accounts that were set to expire in 2025. The bill was introduced in June, led by Senator Schmitt and Senator Casey, with Senators Boozman, Welch, Kaine, Van Hollen, Tuberville, Britt, Mullin, Cotton, Wyden, Klobuchar, Lee, Coons, Ossoff, Padilla, Cardin, Cornyn, Moran, Carper and Tillis co-sponsoring the bill.

“Today is a monumental day with the critically important ENABLE Act passing the Senate. When I originally entered public service it was to fight for people like my son Stephen who was born with a rare genetic disease has epilepsy is on the autism spectrum and is non-verbal. This legislation is the perfect example of what I entered public service to do. The ENABLE Act helps make life better for those with disabilities by allowing them and their families to continue saving and investing through tax-free savings accounts. This legislation empowers those individuals to secure employment and actively participate in society. I am thankful for the support of my colleagues in helping to ensure the passage of this critically important legislation,” said Senator Eric Schmitt.

The ENABLE Act is supported by National Down Syndrome Society; the ABLE Savings Plan Network (ASPN); the National Association of State Treasurers; BPC Action; the Jewish Federations of North America; the American Network of Community Options and Resources (ANCOR); Autism Speaks; the Autistic Self Advocacy Network; the National Down Syndrome Congress; the Kansas Council on Developmental Disabilities; the National Association of Councils on Developmental Disabilities (NACDD); ABLE Today; Muscular Dystrophy Association and CURE SMA.

There are over 162,000 Achieving a Better Life Experience (ABLE) accounts (or 529A accounts under the Internal Revenue Code). Created in 2014 these accounts allow people with disabilities and their families to save and invest through tax-free savings accounts without losing eligibility for federal programs like Medicaid and Supplemental Security Income (SSI).

There are three ABLE provisions set to expire in 2025:

- ABLE to Work: An individual with a disability who is employed can contribute an additional amount to his or her ABLE account. This additional contribution cannot be greater than either: last year’s federal poverty level for a one-person household ($15,060 in 2024), or the beneficiary’s yearly compensation.

- ABLE Saver’s Credit: An individual with a disability who makes qualified contributions to their ABLE account can qualify for a nonrefundable saver’s credit of up to $1,000.

- 529-to-ABLE rollover: An individual with a disability may rollover from a 529 education savings account to an ABLE account that are less than or equal to annual ABLE contribution limits without being subject to income taxation.

Individuals with these ABLE Accounts have saved $1.74 billion annually which demonstrates how successful this program has been. Thanks to this program people with disabilities are empowered to secure employment and actively participate in society.

The ENABLE Act permanently enshrines these provisions into law providing certainty for individuals with disabilities and their families.