ENABLE Act

This bill updates tax rules for ABLE accounts. It would keep the higher contribution amounts in place permanently, count what you put into your own ABLE account toward the federal Saver’s Credit, and make it permanently allowed to roll over money from 529 accounts into ABLE accounts. These changes are meant to make saving in ABLE accounts easier and more flexible for families and individuals.

When the changes kick in: the Saver’s Credit update applies to tax years ending after the law is enacted, and rollovers from 529 to ABLE would apply to distributions made after the law is enacted. For tax years before 2027, the Saver’s Credit still also counts certain retirement contributions and deferrals, in addition to ABLE contributions.

• Who is affected: People who have or contribute to ABLE accounts; families with 529 accounts who may want to move funds to an ABLE account.
• What changes:
  • Permanently keeps increased ABLE contributions in place.
  • Lets ABLE contributions count for the Saver’s Credit.
  • Permanently allows rollovers from 529 accounts to ABLE accounts.
• When: Applies after the law is enacted; special Saver’s Credit rules also mention tax years before 2027.