No CRS summary available for this bill.
This section permits applicable employer defined contribution plans to allow eligible ABLE individuals—employees eligible for qualified ABLE programs under section 529A (i.e., tax-favored savings accounts for individuals with disabilities onset before age 26, exempt from most means-tested benefit resource limits)—to elect redirection of employer contributions to their ABLE accounts. (1) Such contributions count as plan contributions for nondiscrimination rules (e.g., under sections 401(a)(4), 401(k)); (2) they are treated as made by the beneficiary for ABLE purposes; (3) plans must offer the election universally to eligible participants; and (4) permissive withdrawals under section 414(w) may go to ABLE accounts. The section further clarifies employer authority to contribute to ABLE accounts (including matches), directs the Treasury Secretary to confirm such contributions' deductibility under section 162 (retroactive) and issue related guidance within one year, and authorizes model plan amendments. Applies to plan years after enactment (clarifications retroactive).