ABLE to Work Act of 2016

ABLE to Work Act of 2016

This bill amends the Internal Revenue Code, with respect to ABLE accounts (tax-exempt savings accounts for persons with a disability), to allow: (1) an ABLE account beneficiary to make contributions to an ABLE account equal to the lesser of such beneficiary's compensation or an amount equal to the federal poverty line for a one-person household, and (2) a retirement savings tax credit for contributions to an ABLE account.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4795 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4795

 To amend the Internal Revenue Code of 1986 to allow individuals with 
 disabilities to save additional amounts in their ABLE accounts above 
 the current annual maximum contribution if they work and earn income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2016

 Mr. Crenshaw (for himself, Mr. Van Hollen, Mrs. McMorris Rodgers, and 
Mr. Sessions) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow individuals with 
 disabilities to save additional amounts in their ABLE accounts above 
 the current annual maximum contribution if they work and earn income.

    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 ``ABLE to Work Act of 2016''.

SEC. 2. INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS FROM COMPENSATION OF 
              INDIVIDUALS WITH DISABILITIES.

    (a) In General.--Section 529A(b)(2)(B) of the Internal Revenue Code 
of 1986 is amended to read as follows:
                    ``(B) except in the case of contributions under 
                subsection (c)(1)(C), if such contribution to an ABLE 
                account would result in aggregate contributions from 
                all contributors to the ABLE account for the taxable 
                year exceeding the sum of--
                            ``(i) the amount in effect under section 
                        2503(b) for the calendar year in which the 
                        taxable year begins, plus
                            ``(ii) in the case of a designated 
                        beneficiary described in paragraph (7), the 
                        lesser of--
                                    ``(I) compensation (as defined in 
                                section 414(s)) of the designated 
                                beneficiary for the taxable year, or
                                    ``(II) an amount equal to the 
                                poverty line for a one-person 
                                household, as determined for the 
                                calendar year preceding the calendar 
                                year in which the taxable year 
                                begins.''.
    (b) Eligible Designated Beneficiary.--Section 529A(b) of such Code 
is amended by adding at the end the following:
            ``(7) Special rules related to contribution limit.--For 
        purposes of paragraph (2)(B)--
                    ``(A) Designated beneficiary.--A designated 
                beneficiary described in this paragraph is an employee 
                (including an employee within the meaning of section 
                401(c)) with respect to whom no contribution is made 
                to--
                            ``(i) a defined contribution plan (within 
                        the meaning of section 414(i)),
                            ``(ii) an annuity contract described in 
                        section 403(b), and
                            ``(iii) an eligible deferred compensation 
                        plan described in section 457(b) of the 
                        employee for the taxable year.
                    ``(B) Poverty line.--The term `poverty line' has 
                the meaning given such term by section 673 of the 
                Community Services Block Grant Act (42 U.S.C. 9902).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. ALLOWANCE OF SAVER'S CREDIT FOR ABLE CONTRIBUTIONS BY ACCOUNT 
              HOLDER.

    (a) In General.--Section 25B(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of subparagraph (B)(ii), 
by striking the period at the end of subparagraph (C) and inserting ``, 
and'', and by inserting at the end the following:
                    ``(D) the amount of contributions by such 
                individual to the ABLE account (within the meaning of 
                section 529A) of which such individual is the 
                designated beneficiary.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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