What does Preamble of ABLE Employment Flexibility Act do?

This bill proposes to amend the Internal Revenue Code. The proposed amendment would allow employers to contribute to ABLE accounts. These employer contributions could be made in lieu of retirement plan contributions.

What does SHORT TITLE. of ABLE Employment Flexibility Act do?

This bill is formally titled the ABLE Employment Flexibility Act.

What does PROTECTING WORKING ABLE INDIVIDUALS FROM LOSING BENEFITS of ABLE Employment Flexibility Act do?

This section amends the Internal Revenue Code of 1986 to allow eligible employees to elect for employer contributions to be made to a qualified ABLE program instead of a defined contribution plan. The amendments specify that these contributions are not treated as contributions to the applicable employer plan, but are treated as if made to the plan for certain nondiscrimination rules. The election must be available to all eligible ABLE individuals who are eligible to participate in the plan. Employers may contribute to a qualified ABLE program for an eligible individual, including matching contributions. The Secretary of the Treasury is directed to amend regulations to confirm that employer contributions to qualified ABLE programs are considered a reasonable allowance for salaries or other compensation. The Secretary is also directed to update publications for employers to notify employees of the possibility of ABLE program contributions. The amendments generally apply to plan and taxable years beginning after the date of enactment, with some exceptions.

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ABLE Employment Flexibility Act

Last updated: 7/24/2025 · Introduced: 7/24/2025

Author: Amy Klobuchar (D-MN)

TL;DR (AI)

This bill allows employers to contribute to ABLE accounts on behalf of eligible employees, potentially in place of retirement plan contributions.
Eligible employees can elect to have employer contributions directed to an ABLE account instead of a defined contribution plan, while still adhering to nondiscrimination rules.
The bill requires the Treasury Secretary to update employer publications to inform employees about the option of ABLE program contributions.

119th Congressin committeeHR. 4644(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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