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S. 627Senate119th Congress (2025-2027)In Committee

ENABLE Act

Sponsored by Eric SchmittSen. Eric Schmitt (R-MO)
Introduced February 19, 2025

AI-Generated Summary

Updated November 24, 2025 at 2:34 AM UTC

The ENABLE Act permanently extends several tax benefits for ABLE (Achieving a Better Life Experience) accounts, which are savings tools for people with disabilities. It makes the higher contribution limits and the ability to roll over funds from 529 college‑savings plans into ABLE accounts permanent, and it updates the Saver’s Credit to count ABLE contributions as qualified retirement savings. The changes apply to eligible individuals and affect how the Internal Revenue Code treats these accounts for future tax years.

Key Provisions

  • Removes the January 1 2026 deadline, making the higher contribution limits for qualified ABLE accounts permanent.
  • Expands the definition of “qualified retirement savings contributions” for the Saver’s Credit to include contributions made to an ABLE account, and keeps this change in effect for tax years after the law’s enactment.
  • Repeals a provision of the SECURE 2.0 Act that conflicted with the new ABLE‑account rules.
  • Eliminates the January 1 2026 deadline that limited rollovers from traditional 529 college‑savings plans into ABLE accounts, allowing such rollovers indefinitely.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

February 19, 2025

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SenateIntro Referral

Introduced in Senate

February 19, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

February 19, 2025

Bill Text

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Introduced in SenateIssued February 19, 2025

II

119th CONGRESS

1st Session

S. 627

IN THE SENATE OF THE UNITED STATES

February 19, 2025

Mr. Schmitt (for himself, Mr. Van Hollen, Mr. Boozman, Mr. Tuberville, Mr. Kaine, Mrs. Britt, Ms. Klobuchar, Mr. Coons, Mr. Moran, Mr. Tillis, Mr. Fetterman, Mr. Warnock, Mr. Sullivan, and Mr. Kelly) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to make certain provisions with respect to qualified ABLE programs permanent.

1.

Short title

This Act may be cited as the Ensuring Nationwide Access to a Better Life Experience Act or the ENABLE Act.

2.

Permanent extension of increased contributions to ABLE accounts

(a)

In general

Section 529A(b)(2)(B)(ii) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2026.

(b)

Allowance of savers credit

(1)

In general

Section 25B(d)(1) of the Internal Revenue Code of 1986 is amended to read as follows:

(1)

In general

The term qualified retirement savings contributions means, with respect to any taxable year, the sum of—

(A)

the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the eligible beneficiary, and

(B)

in the case of any taxable year beginning before January 1, 2027—

(i)

the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,

(ii)

the amount of—

(I)

any elective deferrals (as defined in section 402(g)(3)) of such individual, and

(II)

any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and

(iii)

the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).

.

(2)

Coordination with SECURE 2.0 Act of 2022 amendment

Paragraph (1) of section 103(e) of the SECURE 2.0 Act of 2022 is repealed, and the Internal Revenue Code of 1986 shall be applied and administered as though such paragraph were never enacted.

(c)

Effective date

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

3.

Permanent extension of rollovers to ABLE programs from 529 programs

(a)

In general

Section 529(c)(3)(C)(i)(III) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2026,.

(b)

Effective date

The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.