This bill creates a federal matching contribution program for ABLE accounts, which are tax-advantaged savings accounts designed for people with disabilities. Under the legislation, individuals with disabilities earning less than 200 percent of the federal poverty line would receive a dollar-for-dollar match (up to $2,000 per year) when they contribute to their ABLE accounts, with the match amount gradually reducing for those earning more. The bill addresses the significant financial disparities faced by people with disabilities, noting they are twice as likely to live in poverty and typically earn about $30,000 less annually than people without disabilities. The matching program takes effect for tax years beginning after December 31, 2026, and the bill also authorizes $5 million in annual grants through 2031 for states to promote ABLE accounts and the new matching credit. Additionally, the legislation requires ABLE program administrators to collect and report demographic data about account holders to help track the program's reach and effectiveness.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.