I 
118TH CONGRESS 
2D SESSION H. R. 10302 
To amend the Internal Revenue Code to allow employers to contribute to 
ABLE accounts in lieu of retirement plan contributions. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 5, 2024 
Ms. DAVIDS of Kansas (for herself and Mr. FITZPATRICK) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code to allow employers 
to contribute to ABLE accounts in lieu of retirement 
plan contributions. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘ABLE Employment 
Flexibility Act’’. 
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SEC. 2. PROTECTING WORKING ABLE INDIVIDUALS FROM 
LOSING BENEFITS BECAUSE OF RETIREMENT 
PLAN RULES. 
(a) IN GENERAL.—Section 414 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(dd) ABLE ACCOUNT CONTRIBUTIONS.— 
‘‘(1) IN
GENERAL.—An applicable employer 
plan (as defined in subsection (v)(6)(A)) which is a 
defined contribution plan shall not be treated as fail-
ing to meet any requirement of this title solely be-
cause the plan provides that an eligible ABLE indi-
vidual may elect for a plan year that employer con-
tributions which 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 indi-
vidual. 
‘‘(2) TREATMENT OF CONTRIBUTIONS.— 
‘‘(A) NO DEDUCTION FOR AMOUNTS CON-
TRIBUTED TO ABLE ACCOUNT.—Except as pro-
vided in subparagraph (B), a contribution to a 
qualified ABLE program pursuant to an elec-
tion under paragraph (1) shall not be treated as 
a contribution to an applicable employer plan. 
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‘‘(B) APPLICATION
OF
NONDISCRIMINA-
TION 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, con-
tributions made to a qualified ABLE program 
pursuant to an election under paragraph (1) 
shall be treated as if such contributions were 
made to the plan. 
‘‘(3) 
UNIVERSAL
AVAILABILITY.—Paragraph 
(1) shall not apply unless the plan provides that the 
election described therein is available to all eligible 
ABLE individuals who are eligible to participate in 
the plan. 
‘‘(4) CASH OR DEFERRED ARRANGEMENT.—A 
plan shall not fail to be treated as including a quali-
fied cash or deferred arrangement described in sec-
tion 401(k)(1) solely because such plan provides for 
the election described in paragraph (1). 
‘‘(5) ELIGIBLE
ABLE
INDIVIDUAL.—For pur-
poses of this subsection, the term ‘eligible ABLE in-
dividual’ means an employee who, as of the first day 
of a plan year, is an eligible individual within the 
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meaning of section 529A(e)(1) for the taxable year 
containing such first day of the plan year. 
‘‘(6) 
TREATMENT
OF
PERMISSIVE
WITH-
DRAWALS.—An eligible ABLE individual may direct 
amounts eligible for withdrawal from an eligible con-
tribution arrangement pursuant to section 414(w) to 
be contributed to a qualified ABLE program de-
scribed in section 529A on behalf of such eligible 
ABLE individual.’’. 
(b) TREATMENT AS BENEFICIARY CONTRIBUTION.— 
Section 529A(b)(7) of the Internal Revenue Code of 1986 
is amended by redesignating subparagraph (B) as sub-
paragraph (C) and by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) EMPLOYER
CONTRIBUTIONS.—Con-
tributions made to a qualified ABLE program 
by an employer on behalf of a designated bene-
ficiary described in this paragraph pursuant to 
paragraph (1) or (6) of section 414(a)(a) shall 
be treated as made by the designated bene-
ficiary.’’. 
(c) CLARIFICATION OF AVAILABILITY OF EMPLOYER 
CONTRIBUTIONS.—Section 529A(e) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
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‘‘(7) EMPLOYER
CONTRIBUTIONS.—An em-
ployer of an eligible individual may contribute to any 
qualified ABLE program for which the eligible indi-
vidual 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 TO A QUALIFIED ABLE PROGRAM.—Not later 
than 1 year after the date of the enactment of this Act, 
the Secretary of the Treasury shall— 
(1) amend the regulations under section 162 of 
the Internal Revenue Code of 1986 to confirm that 
contributions made by an employer to a qualified 
ABLE program described in section 529A of such 
Code on behalf of an eligible ABLE individual de-
scribed in section 414(dd)(5) of such Code who is an 
employee of such employer shall be considered a rea-
sonable 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 max-
imum 
contribution 
described 
in 
section 
529A(b)(2)(B) of such Code with respect to such in-
dividual; and 
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(2) update the publications issued for employers 
to encourage employers offering a retirement plan 
with automatic enrollment to notify employees who 
elect not to contribute to the plan and who may be 
eligible to contribute to a qualified ABLE program 
to notify such employees of the possibility of a con-
tribution under section 529A(b)(2)(B)(ii) of such 
Code. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to plan and taxable years beginning after 
the date of the enactment of this Act. 
(2) CLARIFICATIONS.—The amendment made 
by subsection (c) and the amendments made pursu-
ant to subsection (d)(1) shall apply to plan and tax-
able years beginning before, on, or after the date of 
the enactment of this Act. 
(f) MODEL AMENDMENT AUTHORITY.—The Sec-
retary of the Treasury (or such Secretary’s delegate) shall 
promulgate model amendments which plans may adopt to 
implement contributions to qualified ABLE programs pur-
suant to the amendments made by this section. 
Æ 
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