Synopsis:

Passed: H.R. 1896 and 1897 were included in H.R. 1, which was signed into law by President Trump on December 22, 2017.

Members of Congress introduced a package of three bills intended to expand the ABLE Act. H.R. 1874, the ABLE Age Adjustment Act, would amend Section 529A(e) of the IRS code of 1986, to increase the age threshold for eligibility from 26 to 46 for qualified ABLE programs. Supporters contend that the age limit of 26, a limitation not proposed in the original legislation, prohibits individuals who are diagnosed later in life. Opponents to this legislation cite a 2016 estimate of costs associated with the age increase of $2 billion over 10 years (the other two bills, costing less than $50 million combined, have attracted far less opposition). H.R. 1897, the ABLE Financial Planning Act, allows rollovers from 529 programs to ABLE accounts, permitting funds saved for a college education to be used instead to cover disability related expenses. These rollovers, combined with other contributions made to ABLE accounts, cannot exceed contribution limitations, which amount to the federal gift tax exclusion of $15,000 annually. H.R. 1896, the ABLE to Work Act, allows ABLE account holders to make contributions at or below their yearly earnings or equal to the federal poverty line (currently $12,140). Supporters argued the bill would incentivize people with disabilities to work, allowing them to save more in their ABLE accounts. Disability rights advocates opposed the ABLE Financial Planning Act and the ABLE to Work Act in 2016, when Congress advanced both bills without also adjusting age eligibility requirements. Disability rights advocates supported all three ABLE improvement bills progressing together.

Supporters:

Reps. Tony Cardenas (D- Calif.), Pete Sessions (R-Texas), Cathy McMorris Rodgers (R-Wash.), James Langevin (D- R.I.), Christopher Smith (R-N.J.); Sens. Robert Casey (D-Pa.), Richard Burr (R-N.C.), Sherrod Brown (D-Ohio), Chris Van Hollen (D-Md.); National Down Syndrome Society, The Arc, the Autism Society, the Autistic Self Advocacy Network, the National Down Syndrome Congress, Brain Injury Association, National Down Syndrome Society, United Cerebral Palsy, et al.

Opponents:

Heritage Foundation.

Links to Additional Resources: