S. 627 — ENABLE Act

This section permanently extends increased annual contributions to ABLE accounts (i.e., tax-advantaged savings accounts for individuals with disabilities) from an eligible beneficiary's compensation by striking the expiration date of January 1, 2026. It further revises the retirement savings contributions credit—under which eligible low- and moderate-income taxpayers may claim a nonrefundable credit of up to $1,000 ($2,000 for married individuals filing jointly)—to permanently include contributions to ABLE accounts as qualified contributions and to limit traditional qualified retirement contributions to taxable years beginning before January 1, 2027, by repealing a conflicting provision of the SECURE 2.0 Act of 2022.

This section permanently extends tax-free rollovers from 529 qualified tuition programs to Achieving a Better Life Experience (ABLE) accounts for individuals with disabilities by striking the limitation to distributions before January 1, 2026. The change applies to distributions made after the date of enactment.