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[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>
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