Title: ABLE to Work Act of 2017
Policy area: Taxation

Summary:
ABLE to Work Act of 2017
This bill amends the Internal Revenue Code, with respect to ABLE accounts (tax-exempt savings accounts for persons with a disability), to allow: (1) an ABLE account beneficiary to make additional contributions to an ABLE account equal to the lesser of such beneficiary's compensation or an amount equal to the federal poverty line for a one-person household, and (2) a retirement savings tax credit for contributions to an ABLE account.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 818 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 818

 To amend the Internal Revenue Code of 1986 to allow individuals with 
 disabilities to save additional amounts in their ABLE accounts above 
 the current annual maximum contribution if they work and earn income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 4, 2017

   Mr. Burr (for himself, Mr. Casey, Mr. Van Hollen, and Mr. Moran) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow individuals with 
 disabilities to save additional amounts in their ABLE accounts above 
 the current annual maximum contribution if they work and earn income.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ABLE to Work Act of 2017''.

SEC. 2. INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS FROM COMPENSATION OF 
              INDIVIDUALS WITH DISABILITIES.

    (a) In General.--Section 529A(b)(2)(B) of the Internal Revenue Code 
of 1986 is amended to read as follows:
                    ``(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 sum of--
                            ``(i) the amount in effect under section 
                        2503(b) for the calendar year in which the 
                        taxable year begins, plus
                            ``(ii) in the case of a designated 
                        beneficiary described in paragraph (7), the 
                        lesser of--
                                    ``(I) compensation (as defined by 
                                section 219(f)(1)) includible in the 
                                designated beneficiary's gross income 
                                for the taxable year, or
                                    ``(II) an amount equal to the 
                                poverty line for a one-person 
                                household, as determined for the 
                                calendar year preceding the calendar 
                                year in which the taxable year 
                                begins.''.
    (b) Eligible Designated Beneficiary.--Section 529A(b) of such Code 
is amended by adding at the end the following:
            ``(7) Special rules related to contribution limit.--For 
        purposes of paragraph (2)(B)--
                    ``(A) Designated beneficiary.--A designated 
                beneficiary described in this paragraph is an employee 
                (including an employee within the meaning of section 
                401(c)) with respect to whom--
                            ``(i) no contribution is made for the 
                        taxable year to a defined contribution plan 
                        (within the meaning of section 414(i)) with 
                        respect to which the requirements of section 
                        401(a) or 403(a) are met,
                            ``(ii) no contribution is made for the 
                        taxable year to an annuity contract described 
                        in section 403(b), and
                            ``(iii) no contribution is made for the 
                        taxable year to an eligible deferred 
                        compensation plan described in section 457(b).
                    ``(B) Poverty line.--The term `poverty line' has 
                the meaning given such term by section 673 of the 
                Community Services Block Grant Act (42 U.S.C. 9902).''.
    (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. 3. ALLOWANCE OF SAVER'S CREDIT FOR ABLE CONTRIBUTIONS BY ACCOUNT 
              HOLDER.

    (a) In General.--Section 25B(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of subparagraph (B)(ii), 
by striking the period at the end of subparagraph (C) and inserting ``, 
and'', and by inserting at the end the following:
                    ``(D) the amount of contributions by such 
                individual to the ABLE account (within the meaning of 
                section 529A) of which such individual is the 
                designated beneficiary.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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