ENABLE Act

This bill would make several ABLE account rules permanent. It keeps the higher contribution limit in place and lets contributions to an ABLE account count for the federal Saver’s Credit, which can lower your taxes. It also keeps allowing rollovers from 529 programs into ABLE accounts without losing tax benefits. To avoid conflicts with past law, it removes a related piece of the SECURE 2.0 Act.

Key points:

• Who is affected: People who use ABLE accounts and people with 529 program accounts.
• What changes: Higher ABLE contributions are made permanent; ABLE contributions can qualify for the Saver’s Credit; rollovers from 529 programs to ABLE accounts are made permanent.
• When: The Saver’s Credit changes apply to tax years ending after the bill becomes law; the rollover change applies to distributions made after the bill becomes law.