Ensuring Nationwide Access to ABLE Accounts: The ENABLE Act

A New Bill Would Cement the Expiring Provisions of ABLE Accounts

At Michigan Law Center, we understand the critical role special needs planning plays in the lives of individuals with disabilities and their families. That’s why the introduction of the Ensuring Nationwide Access to a Better Life Experience (ENABLE) Act by Senators Bob Casey (D-PA) and Eric Schmitt (R-MO) is such promising news. This bipartisan legislation seeks to make vital, expiring provisions of the Achieving a Better Life Experience (ABLE) program permanent, ensuring long-term support for those with disabilities.

Why the ENABLE Act Matters

ABLE accounts have been life-changing for individuals with disabilities since the ABLE Act’s passage in 2014. These tax-advantaged accounts allow people to save and invest without jeopardizing access to critical federal assistance programs like Medicaid and Supplemental Security Income (SSI). The ENABLE Act seeks to preserve and enhance this crucial resource.

Without intervention, some enhancements to ABLE accounts will sunset in 2025. The ENABLE Act would remove the expiration date, protecting key provisions that expand access and savings potential for ABLE account holders.

The Benefits of ABLE Accounts

ABLE accounts offer several unique advantages:

• Asset Protection: Individuals can hold up to $100,000 in their ABLE accounts without impacting SSI eligibility. Medicaid and other federal benefits remain unaffected regardless of the account balance (up to the state’s plan limit). Michigan’s current limit is $500,000 before Medicaid benefits are impacted.
• Tax-Free Growth: Contributions to ABLE accounts grow tax-free, and withdrawals for qualified disability expenses—such as housing, healthcare, and assistive technology—are also tax-free.
• Broader Eligibility Coming in 2026: Beginning in 2026, the ABLE Age Adjustment Act will extend account eligibility to individuals who acquired their disability before age 46 (instead of age 26, as it is currently), benefiting millions more Americans, including many veterans.

Critical TCJA Enhancements at Risk

Provisions added by the Tax Cuts and Jobs Act (TCJA) that are set to expire in 2025 include:

• ABLE to Work: Employed account holders can contribute above the standard annual limit, up to the lesser of their annual compensation or the federal poverty level.
• Saver’s Credit: A tax credit of up to $1,000 for ABLE account contributions.
• 529 Rollovers: Families can transfer funds from 529 college savings plans to ABLE accounts for eligible beneficiaries.

These enhancements have empowered individuals with disabilities to achieve greater financial independence. Permanently enshrining these provisions through the ENABLE Act would secure their lasting impact.

Bipartisan Support and Advocacy

The ENABLE Act has garnered bipartisan support from at least 10 senators, disability advocacy organizations, and financial groups nationwide. Senator Schmitt, whose son benefits from an ABLE account, called the bill a “fantastic bipartisan opportunity” to protect access and savings for individuals with disabilities. Senator Casey echoed this sentiment, highlighting the importance of preserving and expanding the program for future generations.

Next Steps

Currently, the ENABLE Act is under review by the Senate Committee on Finance. As advocates for individuals with special needs, we encourage you to stay informed and engaged as this legislation progresses. To track updates, visit Congress.gov.

Michigan Law Center: Advocating for Special Needs Families

At Michigan Law Center, we remain committed to empowering families with tools like ABLE accounts. If you have questions about how ABLE accounts, special needs trusts, or other planning strategies can benefit your family, we’re here to help. Reach out to our team to learn more about securing a brighter financial future for your loved one with disabilities.