I 
113TH CONGRESS 
1ST SESSION 
H. R. 647 
To amend the Internal Revenue Code of 1986 to provide for the tax treatment 
of ABLE accounts established under State programs for the care of 
family members with disabilities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 13, 2013 
Mr. CRENSHAW (for himself, Mr. VAN HOLLEN, Mrs. MCMORRIS RODGERS, 
Mr. SESSIONS, Mr. RUNYAN, Mr. MICA, Ms. TSONGAS, Mr. COFFMAN, 
Mr. ROE of Tennessee, Mr. COOPER, Mr. MORAN, Mr. HARPER, Mr. 
CONNOLLY, Mr. SARBANES, Ms. CLARKE, Mr. LARSEN of Washington, 
Mr. GERLACH, Mr. LARSON of Connecticut, Mr. CARSON of Indiana, Mr. 
TONKO, Mr. CICILLINE, Mr. RYAN of Ohio, Mr. YOUNG of Florida, Mr. 
HOLT, Mrs. CAPPS, Mr. BACHUS, Mr. MCGOVERN, Ms. BONAMICI, Mr. 
MATHESON, Mr. MILLER of Florida, Mr. NUNNELEE, Mr. STIVERS, Mr. 
WOMACK, Ms. HERRERA BEUTLER, Mr. JOHNSON of Ohio, Mrs. DAVIS 
of California, Mr. COURTNEY, Mr. KING of New York, Mrs. HARTZLER, 
Mr. MCKINLEY, Mr. SMITH of New Jersey, Mr. VELA, Mr. WOLF, Mrs. 
CAPITO, Mr. YARMUTH, Ms. BROWNLEY of California, Mr. YODER, Mr. 
ROONEY, Mr. MARCHANT, Mrs. BROOKS of Indiana, Ms. NORTON, Mrs. 
BACHMANN, Mr. HONDA, Mr. MEEHAN, Mr. BENISHEK, Mr. POE of 
Texas, Mr. WELCH, Mr. WALBERG, and Mr. DEUTCH) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Energy and Commerce, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for the tax treatment of ABLE accounts established 
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TKELLEY on DSK3SPTVN1PROD with BILLS
under State programs for the care of family members 
with disabilities, 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 ‘‘Achieving a Better 
Life Experience Act of 2013’’ or the ‘‘ABLE Act of 
2013’’. 
SEC. 2. PURPOSES. 
The purposes of this Act are as follows: 
(1) To encourage and assist individuals and 
families in saving private funds for the purpose of 
supporting individuals with disabilities to maintain 
health, independence, and quality of life. 
(2) To provide secure funding for disability-re-
lated expenses on behalf of designated beneficiaries 
with disabilities that will supplement, but not sup-
plant, benefits provided through private insurance, 
the Medicaid program under title XIX of the Social 
Security Act, the supplemental security income pro-
gram under title XVI of such Act, the beneficiary’s 
employment, and other sources. 
SEC. 3. ABLE ACCOUNTS. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Section 529 of the Internal 
Revenue Code of 1986 is amended by redesignating 
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subsection (f) as subsection (g) and by inserting 
after subsection (e) the following new subsection: 
‘‘(f) ABLE ACCOUNTS.— 
‘‘(1) GENERAL RULES.—For purposes of any 
other provision of law with respect to a qualified 
ABLE program and an ABLE account, except as 
otherwise provided in this subsection— 
‘‘(A) a qualified ABLE program and an 
ABLE account shall be treated in the same 
manner as a qualified tuition program and an 
account described in subsection (b)(1)(A)(ii), 
respectively, are treated, 
‘‘(B) qualified disability expenses with re-
spect to a program or account described in sub-
paragraph (A) shall be treated in the same 
manner as qualified higher education expenses 
are treated, and 
‘‘(C) maximum contributions shall be no 
higher than the limit established by the State 
for their regular 529 account. 
‘‘(2) QUALIFIED
ABLE
PROGRAM.—For pur-
poses of this subsection, the term ‘qualified ABLE 
program’ means a program established and main-
tained by a State or agency or instrumentality there-
of— 
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‘‘(A) under which a person may make con-
tributions to an ABLE account which is estab-
lished for the purpose of meeting the qualified 
disability expenses of the designated beneficiary 
of the account, 
‘‘(B) which meets the requirements of the 
preceding subsections of this section (as modi-
fied by this subsection), determined by sub-
stituting— 
‘‘(i) ‘qualified ABLE program’ for 
‘qualified tuition program’, and 
‘‘(ii) ‘ABLE account’ for ‘account’, 
and 
‘‘(C) which meets the other requirements 
of this subsection. 
‘‘(3) QUALIFIED
DISABILITY
EXPENSES.—For 
purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
disability expenses’ means any expenses which 
are made for the benefit of an individual with 
a disability who is a designated beneficiary. 
‘‘(B) EXPENSES
INCLUDED.—The fol-
lowing expenses shall be qualified disability ex-
penses if such expenses are made for the benefit 
of an individual with a disability who is a des-
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ignated beneficiary and are related to such dis-
ability: 
‘‘(i) EDUCATION.—Expenses for edu-
cation, including tuition for preschool thru 
post-secondary education, which shall in-
clude higher education expenses (as de-
fined by subsection (e)(3)) and expenses 
for books, supplies, and educational mate-
rials related to preschool and secondary 
education, tutors, and special education 
services. 
‘‘(ii) HOUSING.—Expenses for a pri-
mary residence, including rent, purchase of 
a primary residence or an interest in a pri-
mary residence, mortgage payments, real 
property taxes, and utility charges. 
‘‘(iii) 
TRANSPORTATION.—Expenses 
for transportation, including the use of 
mass transit, the purchase or modification 
of vehicles, and moving expenses. 
‘‘(iv) EMPLOYMENT
SUPPORT.—Ex-
penses related to obtaining and maintain-
ing 
employment, 
including 
job-related 
training, assistive technology, and personal 
assistance supports. 
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‘‘(v) 
HEALTH, 
PREVENTION, 
AND 
WELLNESS.—Expenses 
for 
health 
and 
wellness, including premiums for health in-
surance, mental health, medical, vision, 
and dental expenses, habilitation and reha-
bilitation services, durable medical equip-
ment, therapy, respite care, long term serv-
ices and supports, nutritional management, 
communication services and devices, adapt-
ive equipment, assistive technology, and 
personal assistance. 
‘‘(vi) MISCELLANEOUS
EXPENSES.— 
Financial management and administrative 
services; legal fees; expenses for oversight; 
monitoring; home improvements, and modi-
fications, maintenance and repairs, at pri-
mary residence; or funeral and burial ex-
penses. 
‘‘(vii) ASSISTIVE
TECHNOLOGY
AND 
PERSONAL SUPPORT SERVICES.—Expenses 
for assistive technology and personal sup-
port with respect to any item described in 
clauses (i) through (vi). 
‘‘(viii) 
OTHER
APPROVED
EX-
PENSES.—Any other expenses which are 
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approved by the Secretary under regula-
tions and consistent with the purposes of 
this section. 
‘‘(C) INDIVIDUAL WITH A DISABILITY.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), an individual is an in-
dividual with a disability for a year if the 
individual (regardless of age)— 
‘‘(I) has a medically determinable 
physical or mental impairment, which 
results in marked and severe func-
tional limitations, and which can be 
expected to result in death or which 
has lasted or can be expected to last 
for a continuous period of not less 
than 12 month, or 
‘‘(II) is blind. 
‘‘(ii) DISABILITY CERTIFICATION RE-
QUIRED.—An individual shall not be treat-
ed as an individual with a disability for a 
year unless the individual— 
‘‘(I) is receiving (or, for purposes 
of title XIX of the Social Security 
Act, is deemed to be, or treated as, re-
ceiving by the State Medicaid Agency) 
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benefits under the supplemental secu-
rity income program under title XVI 
of such Act, or whose benefits under 
such program are suspended other 
than by reason of misconduct, 
‘‘(II) is receiving disability bene-
fits under title II of such Act, or 
‘‘(III) files a disability certifi-
cation with the Secretary for such 
year. 
‘‘(iii) DISABILITY CERTIFICATION DE-
FINED.—The term ‘disability certification’ 
means, with respect to an individual, a cer-
tification to the satisfaction of the Sec-
retary by the designated beneficiary or the 
parent or guardian of the designated bene-
ficiary that— 
‘‘(I) the individual meets the cri-
teria described in clause (i), and 
‘‘(II) includes a copy of the des-
ignated beneficiary’s diagnosis, signed 
by a physician meeting the criteria of 
section 1861(r)(1) of the Social Secu-
rity Act. 
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‘‘(iv) RESTRICTION ON USE OF CER-
TIFICATION.—No inference may be drawn 
from a disability certification for purposes 
of establishing eligibility for benefits under 
title II, XVI, or XIX of the Social Security 
Act. 
‘‘(4) ROLLOVERS FROM ABLE ACCOUNTS.—Sub-
section (c)(3)(A) shall not apply to any amount paid 
or distributed from an ABLE account to the extent 
that the amount received is paid, not later than the 
60th day after the date of such payment or distribu-
tion, into— 
‘‘(A) another ABLE account for the ben-
efit of— 
‘‘(i) the same beneficiary, or 
‘‘(ii) an individual with a disability 
who is a family member of the beneficiary, 
‘‘(B) any trust which is described in sub-
paragraph (A) or (C) of section 1917(d)(4) of 
the Social Security Act and which is for the 
benefit of an individual described in clause (i) 
or (ii) of subparagraph (A), or 
‘‘(C) a qualified tuition program— 
‘‘(i) for the benefit of the designated 
beneficiary, or 
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‘‘(ii) to the credit of another des-
ignated beneficiary under a qualified tui-
tion program who is a member of the fam-
ily of the designated beneficiary with re-
spect to which the distribution was made. 
The preceding sentence shall not apply to any pay-
ment or distribution if it applied to any prior pay-
ment or distribution during the 12-month period 
ending on the date of the payment or distribution. 
‘‘(5) TRANSFER
TO
STATE.—Subject to any 
outstanding payments due for qualified disability ex-
penses, in the case that the designated beneficiary 
dies or ceases to be an individual with a disability, 
all amounts remaining in the qualified ABLE ac-
count not in excess of the amount equal to the total 
medical assistance paid for the designated bene-
ficiary after the establishment of the account, net of 
any premiums paid from the account or paid by or 
on behalf of the beneficiary to a Medicaid Buy-In 
program, under any State Medicaid plan established 
under title XIX of the Social Security Act shall be 
distributed to such State upon filing of a claim for 
payment by such State. For purposes of this para-
graph, the State shall be a creditor of an ABLE ac-
count and not a beneficiary. Subsection (c)(3) shall 
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not apply to a distribution under the preceding sen-
tence. 
‘‘(6) REGULATIONS.—Not later than 6 months 
after the date of the enactment of this section, the 
Secretary may prescribe such regulations or other 
guidance as the Secretary determines necessary or 
appropriate to carry out the purposes of this section, 
including regulations to prevent fraud and abuse 
with respect to amounts claimed as qualified dis-
ability expenses.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (2) 
of section 6693(a) of the Internal Revenue Code of 
1986 such Code is amended by striking ‘‘and’’ at the 
end of subparagraph (D), by striking the period at 
the end of subparagraph (E) and inserting ‘‘and’’, 
and by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(F) section 529(d) by reason of 529(f) 
(relating to ABLE accounts).’’. 
(b) ANNUAL REPORTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall report annually to Congress on the usage 
of ABLE accounts under section 529(f) of the Inter-
nal Revenue Code of 1986. 
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(2) CONTENTS OF REPORT.—Any report under 
paragraph (1) may include— 
(A) the number of people with an ABLE 
account, 
(B) the total amount of contributions to 
such accounts, 
(C) the total amount and nature of dis-
tributions from such accounts, 
(D) issues relating to the abuse of such ac-
counts, if any, and 
(E) the amounts repaid from such ac-
counts to State Medicaid programs established 
under title XIX of the Social Security Act. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN 
FEDERAL PROGRAMS. 
(a) ACCOUNT FUNDS DISREGARDED FOR PURPOSES 
OF CERTAIN OTHER MEANS-TESTED FEDERAL PRO-
GRAMS.—Notwithstanding any other provision of Federal 
law that requires consideration of 1 or more financial cir-
cumstances of an individual, for the purpose of deter-
mining eligibility to receive, or the amount of, any assist-
ance or benefit authorized by such provision to be provided 
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to or for the benefit of such individual, any amount (in-
cluding earnings thereon) in any ABLE account (as de-
fined in section 529(f) of the Internal Revenue Code of 
1986) of such individual, and any distribution for qualified 
disability expenses (as defined in paragraph (3) of such 
section) shall be disregarded for such purpose with respect 
to any period during which such individual maintains, 
makes contributions to, or receives distributions from such 
ABLE account, except that, in the case of the supple-
mental security income program under title XVI of the 
Social Security Act, a distribution for housing expenses 
(as defined in subparagraph (B)(ii) of such paragraph) 
shall not be so disregarded, and in the case of such pro-
gram, only the 1st $100,000 of the amount (including 
such earnings) in such ABLE account shall be so dis-
regarded. 
(b) SUSPENSION OF SSI BENEFITS DURING PERI-
ODS OF EXCESSIVE ACCOUNT FUNDS.— 
(1) IN GENERAL.—The benefits of an individual 
under the supplemental security income program 
under title XVI of the Social Security Act shall not 
be terminated, but shall be suspended, by reason of 
excess resources of the individual attributable to an 
amount in the ABLE account (as defined in section 
529(f) of the Internal Revenue Code of 1986) of the 
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individual not disregarded under subsection (a) of 
this section. 
(2) NO IMPACT ON MEDICAID ELIGIBILITY.—An 
individual who would be receiving payment of such 
supplemental security income benefits but for the 
application of the previous sentence shall be treated 
for purposes of title XIX of the Social Security Act 
as if the individual continued to be receiving pay-
ment of such benefits. 
Æ 
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