I 
116TH CONGRESS 
1ST SESSION H. R. 4795 
To amend the Internal Revenue Code of 1986 to provide for employer 
contributions to ABLE accounts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 22, 2019 
Ms. SLOTKIN (for herself and Mr. KELLY of Pennsylvania) 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 provide 
for employer contributions to ABLE accounts, and for 
other purposes. 
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 ‘‘Saving To Achieve a 
Better Life Experience Act of 2019’’ or the ‘‘STABLE 
Act’’. 
SEC. 2. EMPLOYER CONTRIBUTIONS TO ABLE ACCOUNTS. 
(a) IN GENERAL.—Section 106 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
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‘‘(h) CONTRIBUTIONS TO ABLE ACCOUNTS.—Any 
amounts contributed by an employee’s employer to any 
ABLE account (as defined in section 529A) designated 
by the employee, and of which the employee is not a bene-
ficiary, shall be treated as employer-provided coverage for 
medical expenses under an accident or health plan to the 
extent such amounts do not exceed the lesser of— 
‘‘(1) the amount such employee contributed 
during the taxable year to such ABLE account (as 
so defined), or 
‘‘(2) an amount equal to 1⁄2 the amount in ef-
fect under section 529A(b)(2)(B)(I).’’. 
(b) FAILURE OF EMPLOYER TO MAKE COMPARABLE 
ABLE ACCOUNT CONTRIBUTIONS.—Chapter 43 of such 
Code is amended by adding at the end the following new 
section: 
‘‘SEC. 4980J. FAILURE OF EMPLOYER TO MAKE COM-
PARABLE ABLE ACCOUNT CONTRIBUTIONS. 
‘‘(a) IN GENERAL.—In the case of an employer who 
on behalf of an employee makes a contribution to which 
section 106(h) applies to an ABLE account (as defined 
in section 529A), there is hereby imposed a tax on the 
failure of such employer to meet the requirements of sub-
section (b) for such calendar year. 
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‘‘(b) RULES AND REQUIREMENTS.—Rules and re-
quirements similar to the rules and requirements of sec-
tion 4980E shall apply for purposes of this section. 
‘‘(c) REGULATIONS.—The Secretary shall issue regu-
lations to carry out the purposes of this section.’’. 
(c) EXCLUSION FROM EMPLOYMENT TAXES.— 
(1) 
RAILROAD
RETIREMENT
TAX.—Section 
3231(e) of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(13) ABLE ACCOUNT CONTRIBUTIONS.—The 
term ‘compensation’ shall not include any payment 
made on behalf of an employee if at the time of such 
payment it is reasonable to believe that the employee 
will be able to exclude such payment from income 
under section 106(h).’’. 
(2) UNEMPLOYMENT TAX.—Section 3306(b) of 
such Code is amended by striking ‘‘or’’ at the end 
of paragraph (19), by striking the period at the end 
of paragraph (20) and inserting ‘‘; or’’, and by in-
serting after paragraph (20) the following new para-
graph: 
‘‘(21) any payment made on behalf of an em-
ployee if at the time of such payment it is reason-
able to believe that the employee will be able to ex-
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clude such payment from income under section 
106(h).’’. 
(3) WITHHOLDING
TAX.—Section 3401(a) of 
such Code is amended by striking ‘‘or’’ at the end 
of paragraph (22), by striking the period at the end 
of paragraph (23) and inserting ‘‘; or’’, and by in-
serting after paragraph (23) the following new para-
graph: 
‘‘(24) any payment made on behalf of an em-
ployee if at the time of such payment it is reason-
able to believe that the employee will be able to ex-
clude such payment from income under section 
106(h).’’. 
(4) EMPLOYER CONTRIBUTIONS REQUIRED TO 
BE SHOWN ON W–2.—Section 6051(a) of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (11), by striking the period at the end of 
paragraph (12) and inserting ‘‘, and’’, and by insert-
ing after paragraph (12) the following new para-
graph: 
‘‘(13) the amount contributed to any ABLE ac-
count (as defined in section 529A) on behalf of such 
employee.’’. 
(d) REGULATIONS AND GUIDANCE.—The Secretary 
of the Treasury shall prescribe such regulations and other 
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guidance as are necessary to carry out the purposes of 
the amendments made by this Act, including verification 
by the employer of amounts an employee contributes dur-
ing the taxable year to an ABLE account (as defined in 
section 529A of such Code). 
(e) CLERICAL AMENDMENT.—The table of sections 
for chapter 43 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 4980J. Failure of employer to make comparable ABLE account contribu-
tions.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
Æ 
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