ABLE Employment Flexibility Act

Employer ABLE contributions and matches

If enacted, employers could put money into ABLE accounts for workers who qualify as eligible ABLE individuals. Employers could match amounts the worker contributes. A retirement plan could offer a yearly election to redirect employer contributions that would otherwise go to the plan into an employee's ABLE account. Those employer contributions would count as if the designated beneficiary made them for ABLE rules. The Treasury would have to update rules and employer guidance within one year, including confirming deductibility as reasonable compensation so long as ABLE annual limits are respected. Most changes would apply to plan and tax years starting after enactment, but some employer-availability and Treasury-rule clarifications would apply to years before, on, or after enactment.