MARKEY, Mrs. ROBY, Ms. DELAURO, Mr. PRICE of North Carolina, Mr. 
MICHAUD, Mr. COHEN, Mr. LIPINSKI, Mr. KENNEDY, Ms. BROWN of 
Florida, Mr. CASTRO of Texas, Ms. EDDIE BERNICE JOHNSON of Texas, 
Mr. MESSER, Mr. WENSTRUP, Mr. CARNEY, Mr. MCCAUL, Mr. PEARCE, 
Mr. GALLEGO, Mr. CA´RDENAS, Mr. BUCSHON, Mr. YOHO, Ms. LOFGREN, 
Mrs. MCCARTHY of New York, Mr. MASSIE, Mr. AL GREEN of Texas, 
Mr. BARBER, Mr. CHABOT, Mr. POCAN, Mr. GARDNER, Mr. TIERNEY, 
Mr. O’ROURKE, Mr. CULBERSON, Ms. CASTOR of Florida, Mr. GRAVES 
of Missouri, Mr. VEASEY, Mr. HALL, Ms. WASSERMAN SCHULTZ, Mr. 
CRAWFORD, Mr. DELANEY, Mrs. BLACKBURN, Mr. YOUNG of Alaska, Mr. 
TURNER, Mr. RICHMOND, Mr. LYNCH, Mr. COLE, Mr. LOWENTHAL, Mr. 
THOMPSON of California, Mr. GOODLATTE, Mr. WILSON of South Caro-
lina, Mr. KLINE, Mrs. NOEM, Mr. ANDREWS, Mr. FITZPATRICK, Mr. 
STUTZMAN, Mr. FINCHER, Mr. BENTIVOLIO, Ms. MOORE, Ms. SCHA-
KOWSKY, Mr. RUPPERSBERGER, Mr. HULTGREN, Ms. ESTY, Mr. 
BUTTERFIELD, Mr. LATTA, Mr. CALVERT, Mr. CUMMINGS, Mr. RAHALL, 
Mr. GIBSON, Mr. ROGERS of Alabama, Ms. KUSTER, Mr. BRALEY of 
Iowa, Mr. LUETKEMEYER, Ms. DELBENE, Mr. PETERS of Michigan, Mr. 
PERLMUTTER, Mr. DUFFY, Mr. MURPHY of Pennsylvania, Ms. FRANKEL 
of Florida, Mr. SCHNEIDER, Mr. COTTON, Mr. ROGERS of Kentucky, Ms. 
SHEA-PORTER, Mr. RIBBLE, Mrs. LOWEY, Mr. GIBBS, Ms. MCCOLLUM, 
Mr. PALLONE, Mr. BEN RAY LUJA´N of New Mexico, Mr. PAULSEN, Mrs. 
BEATTY, Mr. BONNER, Mr. SIRES, Mr. RODNEY DAVIS of Illinois, Mr. 
HUIZENGA of Michigan, Mr. CUELLAR, Mr. SALMON, Ms. EDWARDS, Mr. 
CASSIDY, Mr. SOUTHERLAND, Mr. WALZ, Mr. NADLER, Mr. DOYLE, Mr. 
BLUMENAUER, Mrs. CAROLYN B. MALONEY of New York, Ms. SPEIER, 
Mr. DOGGETT, Ms. MICHELLE LUJAN GRISHAM of New Mexico, Mr. 
SCHOCK, Ms. ROYBAL-ALLARD, Mr. BILIRAKIS, Mr. LATHAM, Mr. WITT-
MAN, Mr. DEFAZIO, Mr. GRIFFIN of Arkansas, Mrs. ELLMERS, Mr. 
ROTHFUS, Mr. SENSENBRENNER, Ms. WATERS, Ms. KAPTUR, Mr. 
THOMPSON of Pennsylvania, Mr. JONES, Mr. LANCE, Mr. MCINTYRE, 
Mr. FORBES, Mr. OWENS, Mr. AMODEI, Mr. BARR, Ms. TITUS, Mr. 
PALAZZO, Mr. GRIFFITH of Virginia, Mr. SCHWEIKERT, Ms. WILSON of 
Florida, Mr. DAVID SCOTT of Georgia, Mr. ROKITA, Mr. NUGENT, Mr. 
POLIS, Mr. ROSS, Mr. RIGELL, Mr. WALDEN, Mr. DENT, Mr. GRAYSON, 
Mr. LAMALFA, Mr. BISHOP of Utah, Mr. BUCHANAN, Mr. BISHOP of 
Georgia, Mrs. KIRKPATRICK, Mr. CARTER, Ms. SEWELL of Alabama, Mr. 
WHITFIELD, Mr. SMITH of Texas, Mr. HOLDING, Mr. FORTENBERRY, 
Mr. NEUGEBAUER, Mr. SIMPSON, Mr. TERRY, Mr. DESANTIS, Mr. 
RADEL, Mr. PITTENGER, Mr. FARENTHOLD, Mr. PASCRELL, Mrs. MIL-
LER
of Michigan, Mr. JOHNSON
of Georgia, Ms. FUDGE, Mr. 
MCDERMOTT, Mr. NEAL, Ms. GRANGER, Mr. BISHOP of New York, Mr. 
FRANKS of Arizona, Mr. CLEAVER, Mr. MEEKS, Mr. LEWIS, Mr. JOYCE, 
Mr. COBLE, Mr. VISCLOSKY, Mr. HORSFORD, Mr. FARR, Mr. VARGAS, 
Ms. LEE of California, Mr. CRAMER, Mr. KINZINGER of Illinois, Mr. 
PETERSON, Ms. ESHOO, Mr. PETERS of California, Mr. NUNES, Mr. 
MAFFEI, Mr. BERA of California, Mr. HUFFMAN, Ms. LINDA T. 
SA´NCHEZ of California, Ms. SINEMA, Mr. RICE of South Carolina, Mr. 
ELLISON, Mr. MURPHY of Florida, Mr. COOK, Mr. JEFFRIES, Ms. HAHN, 
Mr. NOLAN, Mr. TAKANO, Mr. RUIZ, Mr. SCHRADER, Mr. GUTHRIE, Mr. 
HUDSON, Mr. LONG, Mr. TIPTON, Mr. ENGEL, Ms. BASS, Mr. GARCIA, 
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Mr. ENYART, Mr. SHERMAN, Mr. SERRANO, Mr. OLSON, Mr. JORDAN, 
Mr. HECK of Nevada, Mrs. WALORSKI, Mr. BROUN of Georgia, Mr. 
GINGREY of Georgia, Mr. ROYCE, Mr. MCHENRY, Mr. CONAWAY, Mr. 
CONYERS, Mrs. WAGNER, Mr. FLEMING, Mr. GRIMM, Mr. STOCKMAN, 
Mr. ISRAEL, Mr. LOBIONDO, Mr. HINOJOSA, Mr. MULVANEY, Mr. AUS-
TIN SCOTT of Georgia, Mr. COLLINS of Georgia, Ms. JACKSON LEE, Mr. 
DAINES, Mrs. NAPOLITANO, Mr. BURGESS, Mr. THORNBERRY, Mr. SHIM-
KUS, Mr. GENE GREEN of Texas, Mr. MCNERNEY, Mr. GARAMENDI, Mr. 
HURT, Mr. HECK of Washington, Mr. CARTWRIGHT, Ms. CHU, Mr. KIL-
DEE, Mr. WESTMORELAND, Mr. KILMER, Mrs. BUSTOS, Mr. KIND, Mrs. 
NEGRETE MCLEOD, Ms. LORETTA SANCHEZ of California, Mr. POMPEO, 
Mr. MARINO, Ms. MATSUI, Ms. SCHWARTZ, Mr. CROWLEY, Mr. 
SWALWELL of California, Ms. MENG, Mr. SEAN PATRICK MALONEY of 
New York, Ms. VELA´ZQUEZ, Mr. VALADAO, Mr. COSTA, Mr. HASTINGS 
of Washington, Ms. CLARK of Massachusetts, Mr. RUSH, Ms. JENKINS, 
Mr. DANNY K. DAVIS of Illinois, Mr. MCALLISTER, Mr. ROSKAM, Mr. 
HIGGINS, Mr. SCALISE, Mr. GUTIE´RREZ, Mr. BYRNE, Mr. SAM JOHNSON 
of Texas, Mr. QUIGLEY, Mr. KELLY of Pennsylvania, Mr. REICHERT, 
Mrs. BLACK, Mr. YOUNG of Indiana, Mr. PIERLUISI, Mr. HUNTER, Mr. 
DESJARLAIS, Mr. TIBERI, Mr. FRELINGHUYSEN, Ms. GABBARD, Mr. 
HENSARLING, Ms. SLAUGHTER, Mr. RENACCI, Mr. GOSAR, Mr. RANGEL, 
Mr. FLORES, Mr. FATTAH, Mr. HARRIS, Mr. DUNCAN of Tennessee, Mr. 
UPTON, Mr. SABLAN, Mr. MCKEON, Mr. WILLIAMS, Mr. DENHAM, Mr. 
FLEISCHMANN, Mr. BRADY of Texas, Mr. PRICE of Georgia, Mr. 
MCCLINTOCK, Mr. BARTON, Mr. REED, Mr. JOLLY, and Mr. BOUSTANY 
NOVEMBER 12, 2014 
Reported from the Committee on Ways and Means with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
NOVEMBER 12, 2014 
The Committee on Energy and Commerce discharged; committed to the Com-
mittee of the Whole House on the State of the Union and ordered to be 
printed 
[For text of introduced bill, see copy of bill as introduced on February 13, 2013] 
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A BILL 
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. 
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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 2014’’ or the ‘‘ABLE Act of 2014’’. 
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. QUALIFIED ABLE PROGRAMS. 
(a) IN GENERAL.—Subchapter F of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting 
after section 529 the following new section: 
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‘‘SEC. 529A. QUALIFIED ABLE PROGRAMS. 
‘‘(a) GENERAL RULE.—A qualified ABLE program 
shall be exempt from taxation under this subtitle. Notwith-
standing the preceding sentence, such program shall be sub-
ject to the taxes imposed by section 511 (relating to imposi-
tion of tax on unrelated business income of charitable orga-
nizations). 
‘‘(b) QUALIFIED ABLE PROGRAM.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified ABLE 
program’ means a program established and main-
tained by a State, or agency or instrumentality there-
of— 
‘‘(A) under which a person may make con-
tributions for a taxable year, for the benefit of an 
individual who is an eligible individual for such 
taxable year, to an ABLE account which is es-
tablished for the purpose of meeting the qualified 
disability expenses of the designated beneficiary 
of the account, 
‘‘(B) which limits a designated beneficiary 
to 1 ABLE account for purposes of this section, 
‘‘(C) which allows for the establishment of 
an ABLE account only for a beneficiary who is 
a resident of such State or a resident of a con-
tracting State, and 
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‘‘(D) which meets the other requirements of 
this section. 
‘‘(2) CASH
CONTRIBUTIONS.—A program shall 
not be treated as a qualified ABLE program unless 
it provides that no contribution will be accepted— 
‘‘(A) unless it is in cash, or 
‘‘(B) except in the case of contributions 
under subsection (c)(1)(C), if such contribution 
to an ABLE account would result in aggregate 
contributions from all contributors to the ABLE 
account for the taxable year exceeding the 
amount in effect under section 2503(b) for the 
calendar year in which the taxable year begins. 
For purposes of this paragraph, rules similar to the 
rules of section 408(d)(4) (determined without regard 
to subparagraph (B) thereof) shall apply. 
‘‘(3) SEPARATE ACCOUNTING.—A program shall 
not be treated as a qualified ABLE program unless 
it provides separate accounting for each designated 
beneficiary. 
‘‘(4) NO INVESTMENT DIRECTION.—A program 
shall not be treated as a qualified ABLE program un-
less it provides that any contributor to, or designated 
beneficiary under, such program may not directly or 
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indirectly direct the investment of any contributions 
to the program (or any earnings thereon). 
‘‘(5) NO PLEDGING OF INTEREST AS SECURITY.— 
A program shall not be treated as a qualified ABLE 
program if it allows any interest in the program or 
any portion thereof to be used as security for a loan. 
‘‘(6) 
PROHIBITION
ON
EXCESS
CONTRIBU-
TIONS.—A program shall not be treated as a qualified 
ABLE program unless it provides adequate safe-
guards to prevent aggregate contributions on behalf of 
a designated beneficiary in excess of the limit estab-
lished by the State under section 529(b)(6). For pur-
poses of the preceding sentence, aggregate contribu-
tions include contributions under any prior qualified 
ABLE program of any State or agency or instrumen-
tality thereof. 
‘‘(c) TAX TREATMENT.— 
‘‘(1) DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Any distribution under 
a qualified ABLE program shall be includible in 
the gross income of the distributee in the manner 
as provided under section 72 to the extent not ex-
cluded from gross income under any other provi-
sion of this chapter. 
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‘‘(B) DISTRIBUTIONS FOR QUALIFIED DIS-
ABILITY EXPENSES.—For purposes of this para-
graph, if distributions from a qualified ABLE 
program— 
‘‘(i) do not exceed the qualified dis-
ability expenses of the designated bene-
ficiary, no amount shall be includible in 
gross income, and 
‘‘(ii) in any other case, the amount 
otherwise includible in gross income shall be 
reduced by an amount which bears the same 
ratio to such amount as such expenses bear 
to such distributions. 
‘‘(C) CHANGE IN BENEFICIARIES OR PRO-
GRAMS.— 
‘‘(i) ROLLOVERS
FROM
ABLE
AC-
COUNTS.—Subparagraph 
(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 distribution, into another ABLE account 
for the benefit of the same beneficiary or an 
eligible individual who is a family member 
of the beneficiary. 
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‘‘(ii) CHANGE IN DESIGNATED BENE-
FICIARIES.—Any change in the designated 
beneficiary of an interest in a qualified 
ABLE program during a taxable year shall 
not be treated as a distribution for purposes 
of subparagraph (A) if the new beneficiary 
is an eligible individual for such taxable 
year and a member of the family of the 
former beneficiary. 
‘‘(iii) LIMITATION ON CERTAIN ROLL-
OVERS.—Clause (i) shall not apply to any 
transfer if such transfer occurs within 12 
months from the date of a previous transfer 
to any qualified ABLE program for the 
benefit of the designated beneficiary. 
‘‘(D) OPERATING RULES.—For purposes of 
applying section 72— 
‘‘(i) except to the extent provided by 
the Secretary, all distributions during a 
taxable year shall be treated as one dis-
tribution, and 
‘‘(ii) except to the extent provided by 
the Secretary, the value of the contract, in-
come on the contract, and investment in the 
contract shall be computed as of the close of 
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the calendar year in which the taxable year 
begins. 
‘‘(2) GIFT TAX RULES.—For purposes of chapters 
12 and 13— 
‘‘(A) CONTRIBUTIONS.—Any contribution to 
a qualified ABLE program on behalf of any des-
ignated beneficiary— 
‘‘(i) shall be treated as a completed gift 
to such beneficiary which is not a future in-
terest in property, and 
‘‘(ii) shall not be treated as a qualified 
transfer under section 2503(e). 
‘‘(B) TREATMENT OF DISTRIBUTIONS.—Ex-
cept as provided in subparagraph (C), in no 
event shall a distribution from a qualified ABLE 
program be treated as a taxable gift. 
‘‘(C) TREATMENT OF DESIGNATION OF NEW 
BENEFICIARY.—The taxes imposed by chapters 
12 and 13 shall apply to a transfer by reason of 
a change in the designated beneficiary under the 
program (or a contribution under paragraph 
(1)(C) to the ABLE account of a new bene-
ficiary) during any taxable year unless, as of the 
beginning of such taxable year, the new bene-
ficiary is both an eligible individual for such 
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taxable year and a member of the family of the 
former beneficiary. 
‘‘(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT 
USED FOR DISABILITY EXPENSES.— 
‘‘(A) IN
GENERAL.—The tax imposed by 
this chapter for any taxable year on any tax-
payer who receives a distribution from a quali-
fied ABLE program which is includible in gross 
income shall be increased by 10 percent of the 
amount which is so includible. 
‘‘(B) EXCEPTION.—Subparagraph (A) shall 
not apply if the payment or distribution is made 
to a beneficiary (or to the estate of the designated 
beneficiary) on or after the death of the des-
ignated beneficiary. 
‘‘(C) CONTRIBUTIONS
RETURNED
BEFORE 
CERTAIN
DATE.—Subparagraph (A) shall not 
apply to the distribution of any contribution 
made during a taxable year on behalf of the des-
ignated beneficiary if— 
‘‘(i) such distribution is received on or 
before the day prescribed by law (including 
extensions of time) for filing such des-
ignated beneficiary’s return for such taxable 
year, and 
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