ABLE Tomorrow Act
Sponsored By: Senator Moran, Jerry [R-KS]
Introduced
Summary
Expand access to and use of ABLE accounts. This bill would make ABLE accounts more flexible for people with disabilities and push federal agencies to promote and support them to increase enrollment and use.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Easier rollovers and larger ABLE deposits
This bill would remove a specified limit on some rollovers from 529 college savings plans to ABLE accounts. It would also add a rule that certain lump-sum payments—money from a third-party trust, life insurance proceeds paid to the beneficiary, or certain non-taxable 529 distributions—would not count toward the yearly ABLE contribution limit. The trust exception could be used only once per beneficiary each taxable year.
Employers can contribute to ABLE
This bill would let some employer defined contribution plans direct employer contributions to an employee's ABLE account instead of the retirement plan. Employers could make matching or other contributions to an employee's ABLE account without causing plan disqualification under the rules described. Treasury would issue guidance within one year on tax and employer deduction treatment for those contributions.
More ABLE outreach and delayed suspensions
This bill would fund $50 million per year for each fiscal year 2027 through 2031 for grants to states, tribes, and consortia to promote ABLE accounts. It would require many federal and state programs—like Social Security, Medicare-by-disability notices, Medicaid/CHIP, TANF, VA, HUD, Head Start, SNAP/WIC, and vocational rehabilitation—to provide ABLE information to eligible people, with key notices starting 180 days after enactment. The bill would also delay when Social Security ABLE-related benefit suspensions begin so payments continue for at least two months after the beneficiary gets notice.
Keep ABLE money safe from Medicaid
This bill would stop States from seeking repayment of correctly paid Medicaid costs from an ABLE account. The protection would apply even if the ABLE account is part of the beneficiary's estate. This change would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Moran, Jerry [R-KS]
KS • R
Cosponsors
Sen. Van Hollen, Chris [D-MD]
MD • D
Sponsored 5/12/2026
Sen. Tillis, Thomas [R-NC]
NC • R
Sponsored 5/12/2026
Amy Klobuchar
MN • D
Sponsored 5/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov