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Making ABLE Disability Savings Accounts Tax Benefits Permanent.

This law permanently extends key tax benefits related to ABLE savings accounts, designed for individuals with disabilities. This means higher contribution limits and the ability to roll over funds from 529 plans are now permanent, simplifying long-term financial planning. Furthermore, contributions to ABLE accounts can now qualify for the Savers Credit, supporting savings among lower-income individuals.
Key points
Higher annual contribution limits for ABLE accounts (savings for individuals with disabilities) are made permanent, removing the expiration date.
The ability to roll over funds from 529 education savings plans into ABLE accounts is also permanently extended.
Contributions to ABLE accounts will count as eligible for the Savers Credit, potentially lowering taxes for low- and moderate-income savers.
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Status: Introduced
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Additional Information
Print number: 119_HR_1436
Sponsor: Rep. Smucker, Lloyd [R-PA-11]
Process start date: 2025-02-18