H.R.1436 - Ensuring Nationwide Access to a Better Life Experience Act; ENABLE Act (119th Congress)
Summary
H.R.1436, the ENABLE Act, aims to amend the Internal Revenue Code of 1986 to make permanent certain provisions related to qualified ABLE (Achieving a Better Life Experience) programs. These programs allow individuals with disabilities and their families to save for disability-related expenses without jeopardizing their eligibility for needs-based government benefits like SSI and Medicaid. The bill specifically addresses the extension of increased contributions to ABLE accounts and rollovers to ABLE programs from 529 programs, removing expiration dates that were previously set for January 1, 2026.
Expected Effects
If enacted, the ENABLE Act would provide long-term financial security and flexibility for individuals with disabilities by ensuring the continued availability of ABLE accounts. It would allow for increased contributions and rollovers from 529 programs without the worry of these provisions expiring. This permanency would enable better financial planning and management for disability-related expenses.
Potential Benefits
- Enhanced Financial Security: Individuals with disabilities can save for their future needs without fear of losing benefits.
- Simplified Financial Planning: Permanent provisions eliminate uncertainty and allow for better long-term financial strategies.
- Increased Savings Opportunities: Continued allowance of increased contributions and rollovers from 529 plans.
- Greater Access to Resources: ABLE accounts can be used for a wide range of disability-related expenses, improving quality of life.
- Reduced Administrative Burden: Eliminating sunset clauses reduces the need for repeated legislative action to extend these provisions.
Potential Disadvantages
- Potential for Increased Government Spending: Making these provisions permanent could lead to increased utilization of ABLE accounts and associated tax benefits, potentially impacting government revenue.
- Complexity of Tax Code: While simplifying some aspects, the amendments to the Internal Revenue Code add to its overall complexity.
- Risk of Abuse: Although safeguards exist, there is a potential for misuse of ABLE accounts if not properly monitored.
- Limited Impact on Broader Issues: The bill primarily addresses financial aspects and may not fully address other challenges faced by individuals with disabilities.
- Possible Uneven Distribution of Benefits: Those with higher incomes may benefit more from the tax advantages associated with ABLE accounts.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it aims to improve the lives of individuals with disabilities. Specifically, the preamble states the intention to "promote the general Welfare." The bill's focus on financial security and access to resources for this vulnerable population is consistent with this constitutional principle. The bill does not appear to infringe upon any specific individual rights or freedoms guaranteed by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).