Washington, D.C. – U.S. Senators Katie Britt (R-Ala.) and Eric Schmitt (R-Mo.) have introduced the bipartisan Ensuring Nationwide Access to Better Life Experience (ENABLE) Act, aimed at empowering individuals with disabilities and their families. This legislation seeks to enhance economic opportunities by allowing people with disabilities to save and invest through tax-free savings accounts while retaining their eligibility for federal programs like Medicaid and Supplemental Security Income (SSI).
Senator Britt emphasized the act’s potential to bolster economic stability and provide new pathways for individuals with disabilities to reach their full potential. She commended Senator Schmitt’s leadership on the issue and expressed pride in supporting this legislation.
Senator Schmitt, inspired by his son Stephen, highlighted the importance of the ENABLE Act in protecting access to federal programs and allowing people with disabilities to invest and save. He acknowledged the bipartisan support the bill has garnered, with additional cosponsors including Senators Bob Casey (D-Pa.), John Boozman (R-Ark.), Chris Van Hollen (D-Md.), Tom Cotton (R-Ark.), Peter Welch (D-Vt.), Tommy Tuberville (R-Ala.), Tim Kaine (D-Va.), Amy Klobuchar (D-Minn.), Markwayne Mullin (R-Okla.), and Ron Wyden (D-Oreg.).
Senator Tuberville, drawing on his extensive experience in the education sector, underscored the importance of collaboration among teachers, parents, community members, and Congress to support individuals with disabilities in achieving success. He emphasized that the ENABLE Act provides essential safeguards to help people with disabilities invest, save, and attain greater independence.
The ENABLE Act has received support from various organizations, including Autism Speaks, the National Down Syndrome Society, the ABLE Savings Plan Network (ASPN), the National Association of State Treasurers (NAST), BPC Action, the Jewish Federations of North America, and the American Network of Community Options and Resources (ANCOR). Autism Speaks CEO Keith Wargo praised the bipartisan effort, highlighting the significance of ABLE accounts in improving financial security for people with autism and other disabilities.
Created in 2014, Achieving a Better Life Experience (ABLE) accounts, also known as 529A accounts, allow individuals with disabilities and their families to save and invest through tax-free savings accounts without affecting their eligibility for federal programs like Medicaid and SSI. Currently, there are over 162,000 ABLE accounts, with individuals saving $1.74 billion annually.
Three key provisions related to ABLE accounts are set to expire in 2025:
– ABLE to Work: Allows employed individuals with disabilities to make additional contributions to their ABLE accounts.
– ABLE Saver’s Credit: Provides a nonrefundable saver’s credit of up to $1,000 for qualified contributions to ABLE accounts.
– 529 to ABLE Rollover: Permits rollovers from 529 education savings accounts to ABLE accounts without incurring income tax, up to the annual ABLE contribution limit.
The ENABLE Act seeks to make these provisions permanent, ensuring individuals with disabilities have continued access to vital savings tools and reducing reliance on federal safety net programs.
