INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS.

SEC. 11024. INCREASED CONTRIBUTIONS TO ABLE ACCOUNTS.(a) Increase in Limitation for Contributions From Compensation of Individuals With Disabilities.—(1) In general.—Section 529A(b)(2)(B) 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 any contribution by a designated beneficiary described in paragraph (7) before January 1, 2026, the lesser of—“(I) compensation (as defined by section 219(f)(1)) includible in the designated beneficiary’s gross income 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.”.(2) Responsibility for contribution limitation.—Paragraph (2) of section 529A(b) is amended by adding at the end the following: “A designated beneficiary (or a person acting on behalf of such beneficiary) shall maintain adequate records for purposes of ensuring, and shall be responsible for ensuring, that the requirements of subparagraph (B)(ii) are met.”(3) Eligible designated beneficiary.—Section 529A(b) is amended by adding at the end the following:“(7) Special rules related to contribution limit.—For purposes of paragraph (2)(B)(ii)—“(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—“(i) no contribution is made for the taxable year to a defined contribution plan (within the meaning of section 414(i)) with respect to which the requirements of section 401(a) or 403(a) are met,131 STAT. 2076“(ii) no contribution is made for the taxable year to an annuity contract described in section 403(b), and“(iii) no contribution is made for the taxable year to an eligible deferred compensation plan described in section 457(b).“(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).”.(b) Allowance of Saver’s Credit for ABLE Contributions by Account Holder.—Section 25B(d)(1) 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 made before January 1, 2026, by such individual to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary.”.(c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.