No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10296 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10296
To amend the Internal Revenue Code of 1986 to make expiring ABLE
provisions permanent, improve accessibility and education for families,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 4, 2024
Mrs. Rodgers of Washington introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committee on Veterans' Affairs, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
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.
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 Tomorrow Act''.
SEC. 2. ABLE ACCOUNT IMPROVEMENTS.
(a) Increased Contribution Limit Made Permanent.--Section
529A(b)(2)(B)(ii) of such Code is amended by striking ``before January
1, 2026''.
(b) 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 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.''.
(c) Rollover From 529 Account to ABLE Account Made Permanent.--
(1) In general.--Section 529(c)(3)(C)(i)(III) of such Code
is amended by striking ``before January 1, 2026,''.
(2) Repeal of limitation on amount.--Section
529(c)(3)(C)(i) of such Code is amended by striking the matter
following subclause (III).
(d) Exception to Contribution Limit for Certain Lump Sum
Payments.--
(1) 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 amendment.--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).
(e) 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.
(f) Educational Materials.--The Commissioner of Social Security
shall develop and offer materials to educate individuals who become
eligible for benefits under the supplemental security income program
under title XVI of the Social Security Act about ABLE accounts (within
the meaning of section 529A of the Internal Revenue Code of 1986), and
shall report to the Congress on the availability of the materials on a
State-by-State basis.
SEC. 3. 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:
``(aa) ABLE Account Contributions.--
``(1) In general.--An applicable employer plan (as defined
in subsection (v)(6)(A)) that 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 that 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) No deduction for amounts contributed to able
account.--Except as provided in paragraph (4), amounts
contributed pursuant to the election under paragraph (1) to a
qualified ABLE program shall not be treated as a contribution
to an applicable employer plan.
``(3) Universal availability.--Paragraph (1) shall not
apply unless the plan provides the election described therein
is available to all eligible ABLE individuals who are eligible
to participate in the plan.
``(4) 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)(iii), 408(p)(2)(B), 410, and
416, contributions made to a qualified ABLE program pursuant to
the election made described in paragraph (1) shall be treated
as if such contributions were made to the plan.
``(5) Cash or deferred arrangement.--A plan shall not fail
to include a qualified cash or deferred arrangement described
in section 401(k)(1) solely because such plan provides for the
election described in paragraph (1).
``(6) 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.
``(7) Treatment of permissive withdrawals.--An eligible
ABLE individual may direct that amounts eligible for withdrawal
from an eligible contribution arrangement pursuant to section
414(w) 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
such Code is amended by redesignating subparagraph (B) as subparagraph
(C) and inserting as subparagraph (B):
``(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)(a)
shall be treated as made by the designated beneficiary
for purposes of paragraph (2)(B)(ii).''.
(c) Clarification of Availability of Employer Contributions.--
Section 529A(e) of such Code is amended by adding the following
paragraph (7) at the end thereof:
``(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 a Qualified
ABLE Program.--No later than 1 year after enactment, the Secretary of
the Treasury shall--
(1) amend Treasury Regulations under section 162 of such
Code to confirm that contributions made by an employer to a
qualified ABLE program described in section 529A of such Code
on behalf of a eligible ABLE individual described in section
414(aa)(5) of such Code who provides personal services to 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; and
(2) update the publications issued for employers to
encourage employers offering a retirement plan with automatic
enrollment to notify employees that elect not to contribute to
the plan and that may be eligible to contribute to a qualified
ABLE program to notify such employee 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 be effective for plan and
taxable years beginning after enactment.
(2) Clarifications.--Subsections (c) and (d)(1) shall be
effective for plan and taxable years beginning before, on, and
after enactment.
SEC. 4. 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) accessible resources for people with
disabilities such as the National Association
of State Treasurers, which includes ABLE Today,
and the National Disability Institute, which
includes the ABLE National Resource Center.
(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:
``Sec. 6321. ABLE programs
``The Secretary shall inform each individual who enrolls in a
program carried out under the laws administered by the Secretary 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 National Association of State Treasurers,
which includes ABLE Today, and National Disability Institute, which
includes the ABLE National Resource Center, at the time of such
enrollment.''.
(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.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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