H.R. 1436

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to make certain provisions with respect to qualified ABLE programs permanent.

IN THE HOUSE OF REPRESENTATIVES · February 18, 2025 · Sponsor: Mr. Smucker · Committee: Committee on Ways and Means

Table of contents

• H.R. 1436
  • SEC. 1. Short title
  • SEC. 2. Permanent extension of increased contributions to ABLE accounts
  • SEC. 3. Permanent extension of rollovers to ABLE programs from 529 programs

SEC. 1. Short title

• This Act may be cited as the or the .

SEC. 2. Permanent extension of increased contributions to ABLE accounts

• (a) In general
  • of the Internal Revenue Code of 1986 is amended by striking . Section 529A(b)(2)(B)(ii)
• (b) Allowance of savers credit
  • (1) In general
    • of the Internal Revenue Code of 1986 is amended to read as follows: Section 25B(d)(1)
      • (1) In general
        • The term means, with respect to any taxable year, the sum of— qualified retirement savings contributions
          • the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the eligible beneficiary, and
          • in the case of any taxable year beginning before January 1, 2027—
            • (i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,
            • (ii) the amount of—
            • any elective deferrals (as defined in section 402(g)(3)) of such individual, and
            • any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and
            • (iii) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).
  • (2) Coordination with SECURE 2.0 Act of 2022 amendment
    • Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted.
• (c) Effective date
  • The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

SEC. 3. Permanent extension of rollovers to ABLE programs from 529 programs

• (a) In general
  • of the Internal Revenue Code of 1986 is amended by striking . Section 529(c)(3)(C)(i)(III)
• (b) Effective date
  • The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.