[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4795 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 4795
To amend the Internal Revenue Code of 1986 to allow individuals with
disabilities to save additional amounts in their ABLE accounts above
the current annual maximum contribution if they work and earn income.
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IN THE HOUSE OF REPRESENTATIVES
March 17, 2016
Mr. Crenshaw (for himself, Mr. Van Hollen, Mrs. McMorris Rodgers, and
Mr. Sessions) introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to allow individuals with
disabilities to save additional amounts in their ABLE accounts above
the current annual maximum contribution if they work and earn income.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``ABLE to Work Act of 2016''.
SEC. 2. INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS FROM COMPENSATION OF
INDIVIDUALS WITH DISABILITIES.
(a) In General.--Section 529A(b)(2)(B) of the Internal Revenue Code
of 1986 is amended to read as follows:
``(B) except in the case of contributions under
subsection (c)(1)(C), if such contribution to an ABLE
account would result in aggregate contributions from
all contributors to the ABLE account for the taxable
year exceeding the sum of--
``(i) the amount in effect under section
2503(b) for the calendar year in which the
taxable year begins, plus
``(ii) in the case of a designated
beneficiary described in paragraph (7), the
lesser of--
``(I) compensation (as defined in
section 414(s)) of the designated
beneficiary for the taxable year, or
``(II) an amount equal to the
poverty line for a one-person
household, as determined for the
calendar year preceding the calendar
year in which the taxable year
begins.''.
(b) Eligible Designated Beneficiary.--Section 529A(b) of such Code
is amended by adding at the end the following:
``(7) Special rules related to contribution limit.--For
purposes of paragraph (2)(B)--
``(A) Designated beneficiary.--A designated
beneficiary described in this paragraph is an employee
(including an employee within the meaning of section
401(c)) with respect to whom no contribution is made
to--
``(i) a defined contribution plan (within
the meaning of section 414(i)),
``(ii) an annuity contract described in
section 403(b), and
``(iii) an eligible deferred compensation
plan described in section 457(b) of the
employee for the taxable year.
``(B) Poverty line.--The term `poverty line' has
the meaning given such term by section 673 of the
Community Services Block Grant Act (42 U.S.C. 9902).''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 3. ALLOWANCE OF SAVER'S CREDIT FOR ABLE CONTRIBUTIONS BY ACCOUNT
HOLDER.
(a) In General.--Section 25B(d)(1) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of subparagraph (B)(ii),
by striking the period at the end of subparagraph (C) and inserting ``,
and'', and by inserting at the end the following:
``(D) the amount of contributions by such
individual to the ABLE account (within the meaning of
section 529A) of which such individual is the
designated beneficiary.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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