WASHINGTON – U.S. Senator John Boozman (R-AR) is championing legislation to permanently extend provisions that allow people with disabilities and their families to save and invest through tax-free savings accounts while protecting eligibility for federal programs like Medicaid and Supplemental Security Income (SSI). 

The Ensuring Nationwide Access to Better Life Experience (ENABLE) Act would extend Achieving a Better Life Experience (ABLE) account provisions set to expire in 2025 that make it possible for individuals with disabilities to achieve financial independence.

“This is a commonsense measure that helps individuals with disabilities and their caregivers invest and save for the future. I’m pleased to support this bipartisan legislation that will deliver tools allowing these families to better control their financial security,” said Boozman.

The legislation is spearheaded by Senator Eric Schmitt (R-MO) and in addition to Boozman, has the support of Senators Bob Casey (D-PA), Chris Van Hollen (D-MD), Tom Cotton (R-AR), Peter Welch (D-VT), Tommy Tuberville (R-AL), Tim Kaine (D-VA), Katie Britt (R-AL), Amy Klobuchar (D-MN), Markwayne Mullin (R-OK) and Ron Wyden (R-OR).

"My son, Stephen, was my inspiration to run for office in the first place, and since that first day, I have been a staunch advocate for standing up and making life better for those with disabilities. The ENABLE Act is a fantastic bipartisan opportunity to protect access to federal programs for those with disabilities while safeguarding their ability to invest and save. I’m grateful for the support of Senators Casey, Boozman, Welch, Kaine, Van Hollen, Tuberville, Britt, Mullin, Cotton, Wyden, and Klobuchar, and look forward to pushing this bill across the finish line,” Schmitt said. 

The ENABLE Act is supported by Autism Speaks, the National Down Syndrome Society, the ABLE Savings Plan Network (ASPN), the National Association of State Treasures (NAST), BPC Action, the Jewish Federations of North America, and the American Network of Community Options and Resources (ANCOR).

BACKGROUND:

• There are more than 162,000 Achieving a Better Life Experience (ABLE) accounts (or 529A accounts under the Internal Revenue Code). Created in 2014, these accounts allow people with disabilities and their families to save and invest through tax-free savings accounts without losing eligibility for federal programs like Medicaid and SSI. Individuals with ABLE accounts have saved $1.74 billion annually. There are three ABLE provisions set to expire in 2025:
• ABLE to Work: An individual with a disability who is employed can contribute an additional amount to his or her ABLE account. This additional contribution cannot be greater than either:
• the prior year’s federal poverty level for a one-person household ($15,060 in 2024), or
• the beneficiary’s yearly compensation.
• ABLE Saver’s Credit: An individual with a disability who makes qualified contributions to their ABLE account can qualify for a nonrefundable saver’s credit of up to $1,000.
• 529 to ABLE rollover: An individual with a disability may rollover from a 529 education savings account to an ABLE account an amount less than or equal to the annual ABLE contribution limit without being subject to income taxation.
• Expiration of these provisions would create barriers for individuals with disabilities to save for their future needs, while also likely ensuring further utilization of federal safety net programs. The ENABLE Act enshrines these provisions into law permanently—providing certainty.