Bill Details
S.627 - 119th Congress
Status
Latest action
2025-02-19 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-02-19
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (16)
- Sen. Van Hollen, Chris [D-Maryland]
- Sen. Boozman, John [R-Arkansas]
- Sen. Tuberville, Tommy [R-Alabama]
- Sen. Kaine, Tim [D-Virginia]
- Sen. Britt, Katie Boyd [R-Alabama]
- Sen. Klobuchar, Amy [D-Minnesota]
- Sen. Coons, Christopher A. [D-Delaware]
- Sen. Moran, Jerry [R-Kansas]
- Sen. Tillis, Thomas [R-North Carolina]
- Sen. Fetterman, John [D-Pennsylvania]
- Sen. Warnock, Raphael G. [D-Georgia]
- Sen. Sullivan, Dan [R-Alaska]
- Sen. Kelly, Mark [D-Arizona]
- Sen. Lee, Mike [R-Utah]
- Sen. Ossoff, Jon [D-Georgia]
- Sen. Husted, Jon [R-Ohio]
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would make several tax benefits for ABLE accounts permanent. ABLE accounts are savings accounts for people with disabilities that can be used to help pay for qualified expenses without losing certain public benefits. The bill would keep higher yearly contribution limits in place, let people use ABLE contributions for the saver’s credit, and allow money to be moved from a 529 education savings account into an ABLE account on an ongoing basis instead of only for a limited time.
- It would permanently extend the higher amount people can contribute to ABLE accounts each year.
- It would allow contributions to an ABLE account to count toward the retirement savings credit, which could lower a person’s tax bill if they qualify.
- It would permanently continue the option to roll over money from a 529 plan into an ABLE account.
- It would remove a conflicting change made by a previous law so the tax rules work together more clearly.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 627 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 627
To amend the Internal Revenue Code of 1986 to make certain provisions
with respect to qualified ABLE programs permanent.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
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
_______________________________________________________________________
A BILL
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
contributions' means, 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.
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