I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘ABLE Tomorrow 

5 Act’’. 


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1 SEC. 2. ABLE ACCOUNT IMPROVEMENTS. 

2 (a) INCREASED CONTRIBUTION LIMIT MADE PERMA3 NENT.—Section 529A(b)(2)(B)(ii) of such Code is amend4 ed by striking ‘‘before January 1, 2026’’. 

5 (b) REPEAL OF TRANSFER TO STATE UPON DEATH

6 OF DESIGNATED BENEFICIARY.—Section 529A(f) of such 

7 Code is amended to read as follows: 

8 ‘‘(f) PROHIBITION ON STATE ADJUSTMENT OR RE9 COVERY OF MEDICAL ASSISTANCE.—Notwithstanding any 

10 other provision of law, no State may seek adjustment or 

11 recovery of any medical assistance correctly paid on behalf 

12 of a designated beneficiary under a State Medicaid Plan 

13 from the ABLE account of such designated beneficiary, 

14 regardless of whether the ABLE account is part of the 

15 designated beneficiary’s estate.’’. 

16 (c) ROLLOVER FROM 529 ACCOUNT TO ABLE AC17 COUNT MADE PERMANENT.— 

18 (1) IN GENERAL.—Section 529(c)(3)(C)(i)(III) 

19 of such Code is amended by striking ‘‘before Janu20 ary 1, 2026,’’. 

21 (2) REPEAL OF LIMITATION ON AMOUNT.—Sec22 tion 529(c)(3)(C)(i) of such Code is amended by 

23 striking the matter following subclause (III). 

24 (d) EXCEPTION TO CONTRIBUTION LIMIT FOR CER25 TAIN LUMP SUM PAYMENTS.— 


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1 (1) Section 529A(b) of such Code is amended 

2 by adding at the end the following new paragraph: 

3 ‘‘(8) EXCEPTION TO CONTRIBUTION LIMIT FOR

4 CERTAIN LUMP SUM PAYMENTS.— 

5 ‘‘(A) IN GENERAL.—In the case of a con6 tribution to a qualified ABLE program from a 

7 third-party trust, a contribution of amounts re8 ceived by the designated beneficiary as proceeds 

9 of a life insurance contract, or an amount dis10 tributed from a qualified tuition program (as 

11 defined in section 529(b)(1)) that is not includ12 ible in gross income of the distributee under 

13 section 529(c)(3)(C)(i)(III), subsection 

14 (b)(2)(B) shall not apply. 

15 ‘‘(B) LIMITATION.—Subparagraph (A) 

16 shall not apply with respect to any contribution 

17 if such subparagraph has applied to any other 

18 contribution in any taxable year to a qualified 

19 ABLE program of the qualified beneficiary.’’. 

20 (2) CONFORMING AMENDMENT.—Section 

21 529A(b)(2)(B) of such Code is amended by inserting 

22 ‘‘paragraph (8) or’’ after ‘‘Except in the case of con23 tributions under’’ in the matter preceding clause (i). 

24 (e) DELAY OF SUSPENSION OF BENEFITS.—Section 

25 103(b)(1) of the Stephen Beck, Jr., ABLE Act of 2014 


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1 is amended by inserting ‘‘, and the suspension shall begin 

2 with the benefits payable for the 1st calendar month that 

3 begins after the 2-month period that begins with the date 

4 the individual receives notice from the Commissioner of 

5 Social Security that the benefits are to be so suspended’’ 

6 before the period. 

7 (f) EDUCATIONAL MATERIALS.—The Commissioner 

8 of Social Security shall develop and offer materials to edu9 cate individuals who become eligible for benefits under the 

10 supplemental security income program under title XVI of 

11 the Social Security Act about ABLE accounts (within the 

12 meaning of section 529A of the Internal Revenue Code 

13 of 1986), and shall report to the Congress on the avail14 ability of the materials on a State-by-State basis. 

15 SEC. 3. PROTECTING WORKING ABLE INDIVIDUALS FROM 

16 LOSING BENEFITS BECAUSE OF RETIREMENT 

17 PLAN RULES. 

18 (a) IN GENERAL.—Section 414 of the Internal Rev19 enue Code of 1986 is amended by adding at the end the 

20 following new subsection: 

21 ‘‘(aa) ABLE ACCOUNT CONTRIBUTIONS.— 

22 ‘‘(1) IN GENERAL.—An applicable employer 

23 plan (as defined in subsection (v)(6)(A)) that is a 

24 defined contribution plan shall not be treated as fail25 ing to meet any requirement of this title solely beVerDate Sep 11 2014 15:55 Dec 28, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H10296.IH H10296

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1 cause the plan provides that an eligible ABLE indi2 vidual may elect for a plan year that employer con3 tributions that would otherwise be made under the 

4 terms of the plan for such plan year shall (in lieu 

5 of contribution to the plan) be contributed by the 

6 employer to a qualified ABLE program described in 

7 section 529A on behalf of such eligible ABLE indi8 vidual. 

9 ‘‘(2) NO DEDUCTION FOR AMOUNTS CONTRIB10 UTED TO ABLE ACCOUNT.—Except as provided in 

11 paragraph (4), amounts contributed pursuant to the 

12 election under paragraph (1) to a qualified ABLE 

13 program shall not be treated as a contribution to an 

14 applicable employer plan. 

15 ‘‘(3) UNIVERSAL AVAILABILITY.—Paragraph 

16 (1) shall not apply unless the plan provides the elec17 tion described therein is available to all eligible 

18 ABLE individuals who are eligible to participate in 

19 the plan. 

20 ‘‘(4) APPLICATION OF NONDISCRIMINATION

21 RULES.—Under rules prescribed by the Secretary, 

22 for purposes of applying sections 401(a)(4), 

23 401(k)(3), 401(k)(12), 401(k)(13), 401(m)(2), 

24 403(b)(12), 408(k)(3), 408(p)(2)(iii), 408(p)(2)(B), 

25 410, and 416, contributions made to a qualified 


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1 ABLE program pursuant to the election made de2 scribed in paragraph (1) shall be treated as if such 

3 contributions were made to the plan. 

4 ‘‘(5) CASH OR DEFERRED ARRANGEMENT.—A 

5 plan shall not fail to include a qualified cash or de6 ferred arrangement described in section 401(k)(1) 

7 solely because such plan provides for the election de8 scribed in paragraph (1). 

9 ‘‘(6) ELIGIBLE ABLE INDIVIDUAL.—For pur10 poses of this subsection, the term ‘eligible ABLE in11 dividual’ means an employee who, as of the first day 

12 of a plan year, is an eligible individual within the 

13 meaning of section 529A(e)(1) for the taxable year 

14 containing such first day of the plan year. 

15 ‘‘(7) TREATMENT OF PERMISSIVE WITH16 DRAWALS.—An eligible ABLE individual may direct 

17 that amounts eligible for withdrawal from an eligible 

18 contribution arrangement pursuant to section 

19 414(w) be contributed to a qualified ABLE program 

20 described in section 529A on behalf of such eligible 

21 ABLE individual.’’. 

22 (b) TREATMENT AS BENEFICIARY CONTRIBUTION.— 

23 Section 529A(b)(7) of such Code is amended by redesig24 nating subparagraph (B) as subparagraph (C) and insert25 ing as subparagraph (B): 


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1 ‘‘(B) EMPLOYER CONTRIBUTIONS.—Con2 tributions made to a qualified ABLE program 

3 by an employer on behalf of a designated bene4 ficiary described in this paragraph pursuant to 

5 paragraph (1) or (6) of section 414(a)(a) shall 

6 be treated as made by the designated bene7 ficiary for purposes of paragraph (2)(B)(ii).’’. 

8 (c) CLARIFICATION OF AVAILABILITY OF EMPLOYER

9 CONTRIBUTIONS.—Section 529A(e) of such Code is 

10 amended by adding the following paragraph (7) at the end 

11 thereof: 

12 ‘‘(7) EMPLOYER CONTRIBUTIONS.—An em13 ployer of an eligible individual may contribute to any 

14 qualified ABLE program for which the eligible indi15 vidual is the designated beneficiary, including 

16 through a contribution matching a contribution 

17 made by such eligible individual to the qualified 

18 ABLE program.’’. 

19 (d) DEDUCTION FOR CONTRIBUTIONS REMITTED BY

20 EMPLOYER A QUALIFIED ABLE PROGRAM.—No later 

21 than 1 year after enactment, the Secretary of the Treas22 ury shall— 

23 (1) amend Treasury Regulations under section 

24 162 of such Code to confirm that contributions 

25 made by an employer to a qualified ABLE program 


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1 described in section 529A of such Code on behalf of 

2 a eligible ABLE individual described in section 

3 414(aa)(5) of such Code who provides personal serv4 ices to such employer shall be considered a reason5 able allowance for salaries or other compensation for 

6 personal service if such contribution for a year, tak7 ing into account all other contributions to such 

8 qualified ABLE program does not exceed the max9 imum contribution described in section 

10 529A(b)(2)(B) of such Code; and 

11 (2) update the publications issued for employers 

12 to encourage employers offering a retirement plan 

13 with automatic enrollment to notify employees that 

14 elect not to contribute to the plan and that may be 

15 eligible to contribute to a qualified ABLE program 

16 to notify such employee of the possibility of a con17 tribution under section 529A(b)(2)(B)(ii) of such 

18 Code. 

19 (e) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section 

22 shall be effective for plan and taxable years begin23 ning after enactment. 


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1 (2) CLARIFICATIONS.—Subsections (c) and 

2 (d)(1) shall be effective for plan and taxable years 

3 beginning before, on, and after enactment. 

4 SEC. 4. DIRECTING AGENCIES TO INFORM PEOPLE WITH 

5 DISABILITIES ABOUT ABLE ACCOUNTS. 

6 (a) SOCIAL SECURITY ADMINISTRATION.— 

7 (1) IN GENERAL.—Beginning 180 days after 

8 the date of enactment of this Act, the Commissioner 

9 of Social Security shall provide the information de10 scribed in paragraph (3) to any individual who is re11 ceiving any of the following on or after such date: 

12 (A) A supplemental security income benefit 

13 under title XVI of the Social Security Act (42 

14 U.S.C. 1381 et seq.). 

15 (B) A disability insurance benefit under 

16 section 223 of the Social Security Act (42 

17 U.S.C. 423). 

18 (C) A monthly insurance benefit under sec19 tion 202 of the Social Security Act (42 U.S.C. 

20 402) based on such individual’s disability (as 

21 defined in section 223(d) of such Act (42 

22 U.S.C. 423(d))). 

23 (2) PROVISION OF INFORMATION UPON REDE24 TERMINATION OR OVERPAYMENT.—Beginning 180 

25 days after the date of enactment of this Act, the 


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1 Commissioner of Social Security shall, in addition to 

2 providing the information described in paragraph (3) 

3 in accordance with paragraph (1), provide such in4 formation to any individual receiving a benefit de5 scribed in paragraph (1)— 

6 (A) whenever such individual’s eligibility 

7 for such benefit is redetermined; and 

8 (B) whenever such individual is found to 

9 have received an overpayment of such benefits 

10 due to the individual having resources that ex11 ceed the amount established under subpara12 graph (A) or (B) of section 1611(a)(3) of the 

13 Social Security Act (42 U.S.C. 1382(a)(3)), as 

14 applicable to the individual. 

15 (3) INFORMATION ON ABLE ACCOUNTS.—The 

16 information described in this paragraph is the fol17 lowing: 

18 (A) Information on the existence of— 

19 (i) qualified ABLE programs as de20 fined in section 529A of the Internal Rev21 enue Code of 1986; and 

22 (ii) accessible resources for people 

23 with disabilities such as the National Asso24 ciation of State Treasurers, which includes 

25 ABLE Today, and the National Disability 


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1 Institute, which includes the ABLE Na2 tional Resource Center. 

3 (B) Instructions on how to open an ABLE 

4 account (as defined in section 529A of the In5 ternal Revenue Code of 1986). 

6 (b) DEPARTMENT OF VETERANS AFFAIRS.— 

7 (1) IN GENERAL.—Chapter 63 of title 38, 

8 United States Code, is amended by adding at the 

9 end the following new section: 

10 ‘‘§ 6321. ABLE programs 

11 ‘‘The Secretary shall inform each individual who en12 rolls in a program carried out under the laws administered 

13 by the Secretary about the existence of qualified ABLE 

14 programs (as defined in section 529A of the Internal Rev15 enue Code of 1986) and resources for people with disabil16 ities, such as the National Association of State Treas17 urers, which includes ABLE Today, and National Dis18 ability Institute, which includes the ABLE National Re19 source Center, at the time of such enrollment.’’. 

20 (2) CLERICAL AMENDMENT.—The table of sec21 tions at the beginning of chapter 63 of such title is 

22 amended by adding at the end the following new 

23 item: 

‘‘6321. ABLE programs.’’. 

Æ 


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