Bill > S2459

This bill allows employers to contribute to ABLE (Achieving a Better Life Experience) accounts, which are tax-advantaged savings accounts for individuals with disabilities, as an alternative to traditional retirement plan contributions. Specifically, the bill enables employers to redirect retirement plan contributions to an employee's ABLE account if the employee is an "eligible ABLE individual" (defined as someone meeting disability criteria under section 529A). The legislation ensures that these ABLE account contributions will not cause a retirement plan to fail non-discrimination testing and will be treated similarly to standard plan contributions for compliance purposes. Employers can now contribute directly to an employee's ABLE account, including through matching contributions, without negative tax consequences. The bill also requires the Treasury Department to update regulations and guidance to clarify that employer contributions to ABLE accounts can be considered a reasonable compensation expense, subject to annual contribution limits. These provisions aim to provide more flexible savings options for employees with disabilities, allowing them to save for disability-related expenses without risking their eligibility for other benefits. The changes will apply to plan and taxable years beginning after the bill's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2459/all-info