H.R. 1896 – ABLE to Work Act of 2017

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Updated April 15, 2026 at 2:20 PM UTC

The ABLE to Work Act of 2017 changes the tax rules so that people with disabilities who are employed can put more money into their ABLE savings accounts than the current annual limit. The extra amount they may contribute is limited to the smaller of their earned income or the federal poverty line for a single person. The bill also lets those contributors claim the federal Saver’s Credit for the additional contributions. It affects disabled individuals who have earned income and hold ABLE accounts.

Key Provisions

Raises the annual contribution limit for ABLE accounts by allowing contributions above the standard amount up to the lesser of the beneficiary’s compensation (earned income) or the poverty line for a one‑person household.
Defines an eligible designated beneficiary as a disabled employee who does not already receive contributions to a 401(k), 403(b), or 457(b) retirement plan.
Amends the Saver’s Credit rules so that contributions made by the ABLE account holder themselves count toward the credit.
These changes apply to taxable years that begin after the law is enacted.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 4, 2017

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HouseIntro Referral

Introduced in House

April 4, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 4, 2017

Floor Debate

1 member

What members said about H.R. 1896 on the floor

1 Republican

Rep. Brian K. FitzpatrickR-PA-8 · Apr 28, 2017

Mr. Speaker, I rise today in recognition of my constituent Evan Rothholz, an energetic, tech-savvy kindergarten student who happens to have Down syndrome. Down syndrome is a condition that results…

Bill Text

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Introduced in HouseIssued April 4, 2017

I

115th CONGRESS

1st Session

H. R. 1896

IN THE HOUSE OF REPRESENTATIVES

April 4, 2017

Mrs. McMorris Rodgers (for herself, Mr. Sessions, Mr. Cárdenas, Mr. Smith of New Jersey, and Mr. Langevin) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow individuals with disabilities to save additional amounts in their ABLE accounts above the current annual maximum contribution if they work and earn income.

1.

Short title

This Act may be cited as the ABLE to Work Act of 2017.

2.

Increased contributions to ABLE accounts from compensation of individuals with disabilities

(a)

In general

Section 529A(b)(2)(B) of the Internal Revenue Code of 1986 is amended to read as follows:

(B)

except in the case of contributions under subsection (c)(1)(C), if such contribution to an ABLE account would result in aggregate contributions from all contributors to the ABLE account for the taxable year exceeding the sum of—

(i)

the amount in effect under section 2503(b) for the calendar year in which the taxable year begins, plus

(ii)

in the case of a designated beneficiary described in paragraph (7), the lesser of—

(I)

compensation (as defined by section 219(f)(1)) includible in the designated beneficiary's gross income for the taxable year, or

(II)

an amount equal to the poverty line for a one-person household, as determined for the calendar year preceding the calendar year in which the taxable year begins.

.

(b)

Eligible designated beneficiary

Section 529A(b) of such Code is amended by adding at the end the following:

(7)

Special rules related to contribution limit

For purposes of paragraph (2)(B)—

(A)

Designated beneficiary

A designated beneficiary described in this paragraph is an employee (including an employee within the meaning of section 401(c)) with respect to whom—

(i)

no contribution is made for the taxable year to a defined contribution plan (within the meaning of section 414(i)) with respect to which the requirements of section 401(a) or 403(a) are met,

(ii)

no contribution is made for the taxable year to an annuity contract described in section 403(b), and

(iii)

no contribution is made for the taxable year to an eligible deferred compensation plan described in section 457(b).

(B)

Poverty line

The term poverty line has the meaning given such term by section 673 of the Community Services Block Grant Act (42 U.S.C. 9902).

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

3.

Allowance of saver’s credit for ABLE contributions by account holder

(a)

In general

Section 25B(d)(1) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (B)(ii), by striking the period at the end of subparagraph (C) and inserting , and, and by inserting at the end the following:

(D)

the amount of contributions by such individual to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary.

.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.