S.627 - Ensuring Nationwide Access to a Better Life Experience Act; ENABLE Act (119th Congress)
Summary
S.627, the ENABLE Act, seeks to amend the Internal Revenue Code of 1986 to make permanent certain provisions related to qualified ABLE (Achieving a Better Life Experience) programs. These programs allow individuals with disabilities and their families to save for disability-related expenses without jeopardizing eligibility for needs-based government benefits like Supplemental Security Income (SSI) and Medicaid. The bill makes permanent the increased contribution limits to ABLE accounts and rollovers from 529 programs, which were previously set to expire.
Expected Effects
The primary effect of this bill is to provide long-term certainty and stability for individuals with disabilities and their families who rely on ABLE accounts. By making the increased contribution limits and rollover provisions permanent, the bill removes the uncertainty of potential future expirations. This will allow for better financial planning and increased savings for disability-related expenses.
Potential Benefits
- Increased Financial Security: Permanently extends provisions allowing higher contributions to ABLE accounts, enabling individuals with disabilities to save more.
- Simplified Financial Planning: Removes the sunset clause on rollovers from 529 plans, making it easier to transfer funds into ABLE accounts.
- Greater Access to Savings: By making these provisions permanent, more individuals with disabilities may be encouraged to open and contribute to ABLE accounts.
- Supports Independence: ABLE accounts help individuals with disabilities maintain independence and cover essential expenses.
- Reduces Uncertainty: Eliminates the need for future legislative action to extend these provisions, providing stability for families.
Potential Disadvantages
- Potential Revenue Impact: Making these tax provisions permanent could have a small negative impact on federal tax revenue, although the impact is likely to be minimal.
- Complexity of Tax Code: While simplifying some aspects, it adds another layer to the existing tax code, potentially increasing complexity for some taxpayers.
- Limited Scope: The bill primarily benefits individuals with disabilities who are already eligible for and utilizing ABLE accounts; it may not address broader issues of disability support.
- Risk of Over-Saving: While unlikely, some beneficiaries might over-save in ABLE accounts, potentially impacting their eligibility for other needs-based programs if not managed carefully.
- Administrative Burden: Continued administration and oversight of ABLE accounts require resources from government agencies.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to improve the financial well-being of individuals with disabilities. While the Constitution does not explicitly address disability programs, Congress has broad authority to enact laws that promote the general welfare of the population. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).