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S4498119th CongressWALLET

ABLE Tomorrow Act

Sponsored By: Senator Moran, Jerry [R-KS]

Introduced

Summary

Expands access to and protection for ABLE accounts. This bill would strengthen shields for ABLE savings, change who can contribute and how, and fund a new outreach effort to raise awareness.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 7 benefits, 0 costs, 0 mixed.

Federal ABLE awareness grants

If enacted, the bill would create an ABLE Awareness Grants program for states, tribes, and their agencies to fund outreach and enrollment. It would authorize $50 million each year for fiscal years 2027 through 2031. Grant funds could pay for media buys, conferences, canvassing, and other enrollment activities. Grant recipients must track how many ABLE accounts are opened because of the grant work.

Delay Social Security benefit suspension

If enacted, when the Social Security Commissioner notifies you that disability benefits will be suspended, suspension would start with the benefits payable for the first calendar month that begins after the two-month period from the date you got the notice. That gives you at least two months plus the start-of-month buffer before payments stop.

Protect ABLE accounts from Medicaid recovery

If enacted, States would be barred from adjusting or recovering Medicaid medical assistance paid on behalf of an ABLE designated beneficiary from that beneficiary's ABLE account. The protection applies even if the ABLE account is part of the beneficiary's estate. This would preserve ABLE savings from State Medicaid estate recovery.

Employees can redirect employer contributions

If enacted, eligible employees could elect for an employer to send contributions that would otherwise go to a defined contribution plan into the employee's ABLE account for that plan year. The election must be offered to all eligible ABLE individuals in the plan year and the plan would not lose qualified status for offering it. Employer contributions so directed would count as contributions made by the ABLE beneficiary and therefore count against ABLE contribution limits.

New ways to add money to ABLE

If enacted, certain lump-sum sources would be allowed without hitting the ABLE annual contribution cap. This includes third-party trust contributions, life insurance proceeds paid to the beneficiary, and certain tax-free 529 plan distributions. That lump-sum exception could be used at most once per taxable year for the same beneficiary. The bill also removes a textual rollover limit in the 529 rules that could make moving some 529 money to ABLE easier.

Tax and plan rules for employers

If enacted, the Treasury must update rules to confirm employer ABLE contributions can be deducted as compensation, as long as total contributions stay within the ABLE maximum. The Secretary would write rules so ABLE-directed employer amounts count like plan contributions for nondiscrimination and coverage testing. Treasury must also update employer guidance about automatic-enrollment plans within one year.

More ABLE account outreach nationwide

If enacted, many federal and state programs would be required to give information about ABLE accounts to eligible people at enrollment, first service, or move-in. Examples include Social Security, Medicaid and CHIP, TANF, SNAP and WIC, Head Start, IDEA special education, VA programs, HUD-assisted housing, vocational rehabilitation, and certain nonprofit production programs. Many of these notice duties would begin 180 days after enactment. The notices would explain what ABLE accounts are and how to open one; they would not change benefit amounts.

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

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 5/12/2026

  • Sen. Sanders, Bernard [I-VT]

    VT • I

    Sponsored 6/24/2026

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 6/24/2026

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 6/24/2026

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 6/24/2026

  • Sen. Britt, Katie Boyd [R-AL]

    AL • R

    Sponsored 7/27/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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