Title: STABLE Act
Policy area: Taxation

Summary:
Saving To Achieve a Better Life Experience Act of 2019 or the STABLE Act
This bill treats any amount contributed by an employer to an employee's ABLE (Achieving a Better Life Experience) Account as employer-provided coverage for medical expenses under an accident or health plan, subject to certain contribution limits. Such contributions are excluded from an employee's gross income, for income tax purposes. It also imposes a tax on employers who fail to make required contributions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4795 Introduced in House (IH)]

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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 Representatives 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 Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(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 
beneficiary, 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 effect 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 COMPARABLE 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 
subsection (b) for such calendar year.
    ``(b) Rules and Requirements.--Rules and requirements similar to 
the rules and requirements of section 4980E shall apply for purposes of 
this section.
    ``(c) Regulations.--The Secretary shall issue regulations 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 inserting after paragraph (20) the following 
        new paragraph:
            ``(21) 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).''.
            (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 inserting after paragraph (23) the following 
        new paragraph:
            ``(24) 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).''.
            (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 paragraph (11), by striking the period at the end of 
        paragraph (12) and inserting ``, and'', and by inserting after 
        paragraph (12) the following new paragraph:
            ``(13) the amount contributed to any ABLE account (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 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 during 
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 
                            contributions.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.
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