United States S 4498: ABLE Tomorrow Act

Bill Text

II 
119THCONGRESS 
2
DSESSION 
S. 4498 
To  amend  the  Internal  Revenue  Code  of  1986  to  make  expiring  ABLE  
provisions  permanent,  improve  accessibility  and  education  for  families,  
and for other purposes. 
IN  THE  SENATE  OF  THE  UNITED  STATES  
MAY12, 2026 
Mr.  M
ORAN(for  himself,  Mr.  VANHOLLEN,  Mr.  TILLIS,  and  Ms.  KLO-
BUCHAR)  introduced  the  following  bill;  which  was  read  twice  and  referred  
to the Committee on Finance 
A  BILL  
To   amend   the   Internal   Revenue   Code   of   1986   to   make   
expiring  ABLE  provisions  permanent,  improve  accessi-
bility  and  education  for  families,  and  for  other  purposes.  
Be  it  enacted  by  the  Senate  and  House  of  Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This  Act  may  be  cited  as  the  ‘‘ABLE  Tomorrow  4
Act’’. 5
SEC. 2. FINDINGS. 6
Congress finds the following: 7
(1)  People  with  disabilities  are  more  than  two  8
and half times as likely to live in poverty than people 9
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•S  4498  IS
without  disabilities.  In  every  State,  people  with  dis-1
abilities  experience  higher  poverty  rates  than  both  2
the  rate  for  people  without  disabilities  and  the  over-3
all   State   poverty   rate.   Households   containing   an   4
adult  with  a  disability  that  limits  their  ability  to  5
work  require  more  income  to  obtain  the  same  stand-6
ard of living as similar households without a member 7
with a disability. 8
(2)  The  Stephen  Beck,  Jr.,  Achieving  a  Better  9
Life  Experience  Act  of  2014  provided  for  qualified  10
ABLE  programs,  which  provided  eligible  people  with  11
disabilities  the  opportunity  to  open  tax-advantaged  12
savings  accounts  which  they  can  use  for  meeting  13
qualified  disability-related  expenses  without  the  risk  14
of  losing  eligibility  for  certain  benefits  they  need  to  15
maintain health, independence, and quality of life. 16
(3)  Since  the  establishment  of  ABLE  accounts,  17
legislative  changes  have  been  made  to  increase  ac-18
cess  to,  uptake,  and  sustainability  of  the  program,  19
including  increasing  the  disability  onset  age  from  be-20
fore  age  26  to  before  age  46  to  qualify  for  an  ABLE  21
account,  allowing  working  ABLE  account  holders  to  22
contribute  additional  amounts  to  the  annual  con-23
tribution  limit,  creating  a  Saver’s  credit  allowance  24
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for  ABLE  contributions,  and  allowing  for  rollovers  1
of 529 accounts. 2
(4)  As  of  2025,  there  were  hundreds  of  thou-3
sands  of  ABLE  accounts  open  in  the  United  States  4
with  several  million  individuals  with  disabilities  eligi-5
ble  for  ABLE  accounts.  This  number  is  expected  to  6
nearly  double  and  as  amendments  made  by  the  SE-7
CURE  2.0  Act  of  2022  take  effect  beginning  Janu-8
ary 2026. 9
SEC. 3. PURPOSES. 10
The purposes of this Act are— 11
(1)  to  encourage  and  assist  individuals  with  dis-12
abilities   who   have   fewer   resources   to   save   using   13
ABLE accounts; 14
(2)  to  increase  uptake  and  continued  utilization  15
of  ABLE  accounts  by  people  with  disabilities,  espe-16
cially  those  individuals  receiving  benefits  under  the  17
Medicaid  program  established  under  title  XIX  of  the  18
Social  Security  Act  and  the  program  for  supple-19
mental  security  income  benefits  established  under  20
title XVI of such Act; and 21
(3)  to  help  ensure  the  success  and  financial  sta-22
bility  of  ABLE  account  holders  and  the  whole  of  the  23
ABLE account program. 24
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SEC.  4.  REPEAL  OF  TRANSFER  TO  STATE  UPON  DEATH  OF  1
DESIGNATED BENEFICIARY. 2
Section  529A(f)  of  such  Code  is  amended  to  read  as  3
follows: 4
‘‘(f)  P
ROHIBITION  ONSTATEADJUSTMENT  ORRE-5
COVERY OFMEDICALASSISTANCE.—Notwithstanding sec-6
tion 1917(b) of the Social Security Act or any other provi-7
sion  of  law,  no  State  may  seek  adjustment  or  recovery  of  8
any  medical  assistance  correctly  paid  on  behalf  of  a  des-9
ignated  beneficiary  under  a  State  Medicaid  Plan  from  the  10
ABLE  account  of  such  designated  beneficiary,  regardless  11
of  whether  the  ABLE  account  is  part  of  the  designated  12
beneficiary’s estate.’’. 13
SEC. 5. MODIFICATIONS TO CONTRIBUTION LIMITATIONS. 14
(a)  R
E