Bill · S. 2459· Senate(119-S-2459)
ABLE Employment Flexibility Act
- Introduced
- 7/24/2025
- Last activity
- 7/24/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Amy Klobuchar
- Cosponsors
- - 2 - 2
- Introduced
- In Committee
What this bill would do
The ABLE Employment Flexibility Act aims to amend the Internal Revenue Code. It allows employers to contribute to qualified ABLE programs instead of traditional retirement plan contributions. This applies to eligible employees within a defined contribution plan. The bill ensures that such elections do not cause a plan to fail its required standards. It also provides guidance on how these contributions should be treated for tax and nondiscrimination purposes.
Yes· 3 of 4
Would people with disabilities be better off under this?+8
The bill provides significant flexibility for eligible individuals with disabilities to receive employer contributions and matching funds into their ABLE accounts.
Does this expand the rights of people with disabilities?+7
The bill increases financial flexibility for individuals with disabilities by allowing employer contributions to be directed to ABLE accounts instead of retirement plans.
Would households on low incomes be better off under this?+4
The bill provides a mechanism for building savings through ABLE accounts which can be more accessible for certain low-income disabled workers.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Flexibility in Contributions: An eligible ABLE individual can elect to have employer contributions directed to a qualified ABLE program instead of a retirement plan. (Section 2(a)(1))
-
Employer Matching Capability: Employers are permitted to contribute to any qualified ABLE program for which the eligible individual is the designated beneficiary, which can include matching an individual's own contributions. (Section 2(c))
-
Withdrawal Flexibility: An eligible ABLE individual has the option to direct amounts eligible for withdrawal from an eligible contribution arrangement to be contributed to a qualified ABLE program. (Section 2(a)(6))
-
Improved Employer Information: The Secretary of the Treasury is directed to update employer publications to encourage notifying employees who opt out of retirement plans about the possibility of contributing to an ABLE program instead. (Section 2(d)(2))
Potential Negative Impacts for People
-
Requirement for Universal Availability: A plan can only offer this election if it is available to all eligible ABLE individuals who are eligible to participate in the plan. (Section 2(a)(3))
-
Contribution Deductions: Except for specific circumstances regarding nondiscrimination rules, a contribution to an ABLE program via this election is not treated as a contribution to the employer plan. (Section 2(a)(2)(A))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For People With Disabilities+8Good For Low Income Households+4
- Social Issues And Justice
- Improves Disability Rights+7Improves Poverty Reduction+3
- 6/11/2026
- 1 Cosponsor added.
- 7/24/2025
- Read twice and referred to the Committee on Finance.
- 3 Cosponsors added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Timothy KaineDemocrat · Virginia
Jerry MoranRepublican · Kansas
Eric SchmittRepublican · Missouri
Chris Van HollenDemocrat · Maryland