Republican Senators introduced legislation on April 11, 2019, to permanently extend certain provisions of the Tax Cuts and Jobs Act of 2017. The bill (S 1162) was introduced by Senator Ted Cruz (R-TX) and co-sponsored by Senators Marsha Blackburn (R-TN), Mike Braun (R-IN), Kevin Cramer (R-ND) and Joni Ernst (R-IA).
Among other things, the legislation would make permanent a number of temporary provisions that expand options for taxpayers who contribute to Achieving a Better Life Experience (ABLE) accounts, which are accounts designed to set aside savings for the needs of disabled individuals. The legislation would make permanent the following provisions.
- Eligible employed ABLE account beneficiaries may contribute all of their annual compensation, up to the federal poverty line, to an ABLE account.
- ABLE account beneficiaries who make contributions to their accounts may take advantage of the Saver’s tax credit.
- Individuals may rollover 529 account assets to an ABLE account for the benefit of the 529 account’s designated beneficiary or the beneficiary’s family member.
All three provisions currently are scheduled to expire on January 1, 2026. An earlier version of the same legislation was introduced on April 17, 2018, but the Senate took no action on that bill.