ABLE Employment Flexibility Act

Key Points

• This bill lets workers with disabilities redirect employer retirement plan contributions into their ABLE savings accounts instead of a traditional 401(k) or similar plan. This gives them more control over how their employer benefits are used.
• ABLE accounts are tax-advantaged savings tools for people with disabilities. Money saved in these accounts generally does not count against asset limits for programs like Medicaid or Social Security, so redirecting employer contributions here helps workers save without risking their public benefits.
• Employers would also be allowed to directly contribute to or match contributions into a worker's ABLE account, giving workers with disabilities a benefit similar to retirement matching that other employees enjoy.
• The bill requires retirement plans to make this option available to all eligible ABLE individuals participating in the plan, not just some. It also directs the Treasury Department to create model plan language and update employer publications within one year of enactment.
• Employer contributions to ABLE accounts would be treated as regular business expenses for tax purposes, giving companies a clear financial incentive to offer this option without worrying about losing their tax deduction.