[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 493 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 493

     To amend the Internal Revenue Code of 1986 to provide for the 
  establishment of ABLE accounts for the care of family members with 
                 disabilities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 26, 2009

Mr. Casey (for himself, Mr. Hatch, Mr. Dodd, Mr. Burr, Mr. Kennedy, and 
Mr. Brownback) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to provide for the 
  establishment of ABLE accounts for the care of family members with 
                 disabilities, and for other purposes.

    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 ``Achieving a Better Life Experience 
Act of 2009'' or the ``ABLE Act of 2009''.

SEC. 2. PURPOSES.

    The purposes of this Act are as follows:
            (1) To encourage and assist individuals and families in 
        saving private funds for the purpose of supporting individuals 
        with disabilities to maintain health, independence, and quality 
        of life.
            (2) To provide secure funding for disability-related 
        expenses on behalf of designated beneficiaries with 
        disabilities that will supplement, but not supplant, benefits 
        provided through private insurance, the Medicaid program under 
        title XIX of the Social Security Act, the supplemental security 
        income program under title XVI of such Act, the beneficiary's 
        employment, and other sources.

SEC. 3. ABLE ACCOUNTS.

    (a) Establishment.--
            (1) In general.--Subchapter F of chapter 1 of the Internal 
        Revenue Code of 1986 (relating to exempt organizations) is 
        amended by inserting after part VIII the following new part:

          ``PART IX--SAVINGS FOR INDIVIDUALS WITH DISABILITIES

``Sec. 530A. ABLE Accounts.

``SEC. 530A. ABLE ACCOUNTS.

    ``(a) General Rule.--An ABLE account shall be exempt from taxation 
under this subtitle. Notwithstanding the preceding sentence, such 
account shall be subject to the taxes imposed by section 511 (relating 
to imposition of tax on unrelated business income of charitable 
organizations).
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1)  ABLE accounts.--The term `ABLE account' means a 
        trust created or organized in the United States (and designated 
        as an ABLE account at the time created or organized) 
        exclusively for the purpose of paying qualified disability 
        expenses of an individual who is an individual with a 
        disability and who is the designated beneficiary of the trust, 
        but only if the written governing instrument creating the trust 
        meets the following requirements:
                    ``(A) No contribution will be accepted--
                            ``(i) except in the case of rollover 
                        contributions described in subsection (c)(4) 
                        and sections 223(c)(5)(A)(ii), 
                        408(d)(3)(A)(iii), 529(c)(3)(E), and 530(d)(9), 
                        unless it is in cash,
                            ``(ii) if such contribution would result in 
                        aggregate contributions for the taxable year 
                        and all preceding taxable years exceeding 
                        $500,000, and
                            ``(iii) after the date on which the account 
                        holder attains the age of 65.
                    ``(B) The trustee is--
                            ``(i) a bank (as defined in section 
                        408(n)),
                            ``(ii) the designated beneficiary,
                            ``(iii) a parent or guardian of the 
                        designated beneficiary, or
                            ``(iv) a third-party appointed by the 
                        designated beneficiary or a parent or guardian 
                        of the designated beneficiary (including a 
                        family member of the designated beneficiary or 
                        an organization that administers pooled and 
                        special needs trusts) who demonstrates to the 
                        satisfaction of the Secretary that the manner 
                        in which that person will administer the trust 
                        will be consistent with the requirements of 
                        this section.
                    ``(C) No part of the trust assets will be invested 
                in life insurance contracts.
                    ``(D) The assets of the trust shall not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
                    ``(E) Except as provided in paragraph (4) or (5) of 
                subsection (c), in the case that the designated 
                beneficiary dies or ceases to be an individual with a 
                disability, all amounts remaining in the trust not in 
                excess of the amount equal to the total medical 
                assistance paid for the designated beneficiary after 
                the establishment of the trust under any State Medicaid 
                plan established under title XIX of the Social Security 
                Act shall be distributed to such State.
            ``(2) Qualified disability expenses.--
                    ``(A) In general.--The term `qualified disability 
                expenses' means any expenses which--
                            ``(i) are made for the benefit of an 
                        individual with a disability who is a 
                        designated beneficiary of the trust, and
                            ``(ii) approved under regulations 
                        established by the Secretary.
                    ``(B) Expenses included.--The following expenses 
                shall, to the extent provided under regulations 
                established by the Secretary, be qualified disability 
                expenses if made for the benefit of an individual with 
                a disability who is a designated beneficiary of the 
                trust:
                            ``(i) Education.--Expenses for education, 
                        including tuition for preschool thru post-
                        secondary education, books, supplies, and 
                        educational materials related to such 
                        education, tutors, and special education 
                        services.
                            ``(ii) Housing.--Expenses for housing, 
                        including rent, mortgage payments, home 
                        improvements and modifications, maintenance and 
                        repairs, real property taxes, and utility 
                        charges.
                            ``(iii) Transportation.--Expenses for 
                        transportation, including the use of mass 
                        transit, the purchase or modification of 
                        vehicles, and moving expenses.
                            ``(iv) Employment support.--Expenses 
                        related to obtaining and maintaining 
                        employment, including job-related training, 
                        assistive technology, and personal assistance 
                        supports.
                            ``(v) Health, prevention, and wellness.--
                        Expenses for the health and wellness, including 
                        premiums for health insurance, medical, vision, 
                        and dental expenses, habilitation and 
                        rehabilitation services, durable medical 
                        equipment, therapy, respite care, long term 
                        services and supports, and nutritional 
                        management.
                            ``(vi) Life necessities.--Expenses for life 
                        necessities, including clothing, activities 
                        which are religious, cultural, or recreational, 
                        supplies and equipment for personal care, 
                        community-based supports, communication 
                        services and devices, adaptive equipment, 
                        assistive technology, personal assistance 
                        supports, financial management and 
                        administrative services, expenses for 
                        oversight, monitoring, or advocacy, funeral and 
                        burial expenses.
                            ``(vii) Other approved expenses.--Any other 
                        expenses which are approved by the Secretary 
                        under regulations and consistent with the 
                        purposes of this section.
                            ``(viii) Assistive technology and personal 
                        support services.--Expenses for assistive 
                        technology and personal support with respect to 
                        any item described in clauses (i) through 
                        (vii).
            ``(3) Individual with a disability.--An individual is an 
        individual with a disability if such individual--
                    ``(A) would be eligible to receive supplemental 
                security income benefits due to blindness or disability 
                under title XVI of the Social Security Act, or 
                disability benefits under Title II of the Social 
                Security Act, notwithstanding--
                            ``(i) the income and assets tests and 
                        substantial gainful activity test required for 
                        eligibility for such benefits, and
                            ``(ii) whether a determination has been 
                        made that such individual is blind or disabled, 
                        or
                    ``(B) is eligible to receive or is deemed to be 
                receiving supplemental security income benefits due to 
                blindness or disability under title XVI of the Social 
                Security Act, or disability benefits under title II of 
                the Social Security Act.
            ``(4) Rules relating to estate and gift tax.--Rules similar 
        to the rules of paragraphs (2), (4), and (5) of section 529(c) 
        shall apply for purposes of this section.
            ``(5) Only 1 account per qualified beneficiary.--No 
        individual may have more than 1 ABLE account for an individual 
        with a disability.
    ``(c) Tax Treatment of Distributions.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, any amount paid or distributed out of an ABLE 
        account shall be included in gross income by the payee or 
        distributee, as the case may be, for the taxable year in which 
        received in the manner as provided in section 72.
            ``(2) Distributions for benefit of designated 
        beneficiary.--
                    ``(A) In general.--No amount shall be includible in 
                gross income under paragraph (1) if the qualified 
                disability expenses of the designated beneficiary 
                during the taxable year are not less than the aggregate 
                distributions during the taxable year.
                    ``(B) Distributions in excess of expenses.--If such 
                aggregate distributions exceed such expenses during the 
                taxable year, the amount otherwise includible in gross 
                income under paragraph (1) shall be reduced by the 
                amount which bears the same ratio to the amount which 
                would be includible in gross income under paragraph (1) 
                (without regard to this subparagraph) as the qualified 
                disability expenses bear to such aggregate 
                distributions.
                    ``(C) Disallowance of excluded amounts as 
                deduction, credit, or exclusion.--No deduction, credit, 
                or exclusion shall be allowed to the taxpayer under any 
                other section of this chapter for any qualified 
                disability expenses to the extent taken into account in 
                determining the amount of the exclusion under this 
                paragraph.
            ``(3) Additional tax for distributions not used for benefit 
        of designated beneficiary.--
                    ``(A) In general.--The tax imposed by this chapter 
                for any taxable year on any taxpayer who receives a 
                payment or distribution from an ABLE account shall be 
                increased by 10 percent of the amount thereof which is 
                includible in gross income under paragraph (1).
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if the payment or distribution is made to a beneficiary 
                (or to the estate of the designated beneficiary) on or 
                after the death of the designated beneficiary.
                    ``(C) Contributions returned before certain date.--
                Subparagraph (A) shall not apply to the distribution of 
                any contribution made during a taxable year if--
                            ``(i) such distribution is made before the 
                        60th day after the date on which the 
                        contribution was made, and
                            ``(ii) such distribution is accompanied by 
                        the amount of net income attributable to such 
                        excess contribution.
                Any net income described in clause (ii) shall be 
                included in gross income for the taxable year in which 
                such excess contribution was made.
            ``(4) Rollovers.--Paragraph (1) shall not apply to any 
        amount paid or distributed from an ABLE account to the extent 
        that the amount received is paid, not later than the 60th day 
        after the date of such payment or distribution, into--
                    ``(A) another ABLE account for the benefit of--
                            ``(i) the same beneficiary, or
                            ``(ii) an individual who--
                                    ``(I) is the spouse of such 
                                individual with a disability, or bears 
                                a relationship to such individual with 
                                a disability which is described in 
                                section 152(d)(2), and
                                    ``(II) is also an individual with a 
                                disability, or
                    ``(B) any trust which is described in subparagraph 
                (A) or (C) of section 1917(d)(4) of the Social Security 
                Act and which is for the benefit of an individual 
                described in clause (i) or (ii) of subparagraph (A).
        The preceding sentence shall not apply to any payment or 
        distribution if it applied to any prior payment or distribution 
        during the 12-month period ending on the date of the payment or 
        distribution.
            ``(5) Change in beneficiary.--Any change in the beneficiary 
        of an ABLE account shall not be treated as a distribution for 
        purposes of paragraph (1) if the new beneficiary is an 
        individual described in paragraph (4)(A)(ii) as of the date of 
        the change.
    ``(d) Tax Treatment of Accounts.--Rules similar to the rules of 
paragraphs (2) and (4) of section 408(e) shall apply to any ABLE 
account.
    ``(e) Community Property Laws.--This section shall be applied 
without regard to any community property laws.
    ``(f) Custodial Accounts.--For purposes of this section, a 
custodial account shall be treated as a trust if--
            ``(1) the assets of such account are held by a bank (as 
        defined in section 408(n) or another person who demonstrates, 
        to the satisfaction of the Secretary, that the manner in which 
        he will administer the account will be consistent with the 
        requirements of this section, and
            ``(2) the custodial account would, except for the fact that 
        it is not a trust, constitute an account described in 
        subsection (b)(1).
For purposes of this title, in the case of a custodial account treated 
as a trust by reason of the preceding sentence, the custodian of such 
account shall be treated as the trustee thereof.
    ``(g) Reports.--The trustee of an ABLE account shall make such 
reports regarding such account to the Secretary and to the beneficiary 
of the account with respect to contributions, distributions, and such 
other matters as the Secretary may require. The reports required by 
this subsection shall be filed at such time and in such manner and 
furnished to such individuals at such time and in such manner as may be 
required.
    ``(h) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2010, the $500,000 dollar amount under 
        subsection (b)(1)(A)(i)(II) shall be increased by an amount 
        equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost of living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2009' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $1,000, such amount shall be rounded 
        to the next lowest multiple of $1,000.
    ``(i) Regulations.--The Secretary, in consultation with the 
Secretary of Health and Human Services, shall prescribe regulations to 
carry out the purposes of this section, including regulations--
            ``(1) to ensure that individuals do not have more than 1 
        ABLE account, and
            ``(2) to prevent fraud and abuse with respect to amounts 
        claimed as qualified disability expenses.''.
            (2) Conforming amendments.--
                    (A) Tax on excess contributions.--
                            (i) In general.--Subsection (a) of section 
                        4973 of the Internal Revenue Code of 1986 is 
                        amended by striking ``or'' at the end of 
                        paragraph (4), by inserting ``or'' at the end 
                        of paragraph (5), and by inserting after 
                        paragraph (5) the following new paragraph:
            ``(6) an ABLE account (within the meaning of section 
        530A),''.
                            (ii) Excess contributions.--Section 4973 of 
                        such Code is amended by adding at the end the 
                        following new subsection:
    ``(h) Excess Contributions to ABLE Accounts.--For purposes of this 
section, in the case of an ABLE account (within the meaning of section 
530A), the term `excess contributions' means the sum of--
            ``(1) the amount by which the sum of the amount contributed 
        for the taxable year to such accounts plus such amounts 
        contributed for all preceding taxable years exceeds the amount 
        described in section 530A(b)(1)(A)(ii), and
            ``(2) the amount determined under this section for the 
        preceding taxable year, reduced by the distributions from such 
        account which were includible in gross income under section 
        530A(c)(1).
For purposes of this section, an amount which is distributed out of an 
ABLE account in a distribution to which section 530A(c)(3)(C) applies 
shall be treated as an amount not contributed.''.
                    (B) Tax on prohibited transactions.--
                            (i) In general.--Paragraph (1) of section 
                        4975(e) of such Code (defining plan) is amended 
                        by redesignating subparagraph (G) as 
                        subparagraph (H), by striking ``or'' at the end 
                        of subparagraph (F), and by adding after 
                        subparagraph (F) the following:
                    ``(G) an ABLE account described in section 530A, 
                or''.
                            (ii) Exemption.--Subsection (d) of section 
                        4975 of such Code (relating to exemptions) is 
                        amended by striking ``or'' at the end of 
                        paragraph (22), by striking the period at the 
                        end of paragraph (23) and inserting ``; or'', 
                        and by inserting after paragraph (23) the 
                        following:
            ``(24) in the case of an ABLE account, any transaction to 
        provide housing or other services by a family member to or for 
        the designated beneficiary of the trust to the extent that such 
        transaction does not exceed the fair market value of the 
        housing or service (as the case may be) provided.''.
                            (iii) Special rule.--Subsection (c) of 
                        section 4975 of such Code (relating to tax on 
                        prohibited transactions) is amended by adding 
                        at the end the following new paragraph:
            ``(7) Special rule for able accounts.--An individual for 
        whose benefit an ABLE account is established and any 
        contributor to such account shall be exempt from the tax 
        imposed by this section with respect to any transaction 
        concerning such account (which would otherwise be taxable under 
        this section) if section 530A(d) applies with respect to such 
        transaction.''.
                    (C) Rollovers from certain other tax favored 
                accounts.--
                            (i) Qualified tuition programs.--Paragraph 
                        (3) of section 529(c) of such Code is amended 
                        by adding at the end the following new 
                        subparagraph:
                    ``(E) Contributions to able account.--Subparagraph 
                (A) shall not apply to that portion of any distribution 
                which, within 60 days of such distribution, is 
                contributed to an ABLE account for the benefit of the 
                designated beneficiary.''.
                            (ii) Education savings accounts.--
                        Subsection (d) of section 530 of such Code is 
                        amended by adding at the end the following new 
                        paragraph:
            ``(10) Contributions to able account.--Paragraph (1) shall 
        not apply to any amount paid or distributed from a Coverdell 
        education savings account to the extent that the amount 
        received is paid, not later than the 60th day after the date of 
        such payment or distribution, into an ABLE account for the 
        benefit of the same beneficiary.''.
                            (iii) Health savings accounts.--
                        Subparagraph (A) of section 223(f)(5) is 
                        amended--
                                    (I) by inserting ``(i)'' before 
                                ``into a health savings account'', and
                                    (II) by inserting ``or (ii) into an 
                                ABLE account for the benefit of such 
                                beneficiary'' before ``not later than 
                                the 60th day''.
                            (iv) Certain iras.--Subparagraph (A) of 
                        section 408(d)(3) is amended by striking ``or'' 
                        at the end of clause (i), by striking the 
                        period at the end of clause (ii) and inserting 
                        ``; or'', and by inserting after clause (ii) 
                        the following new clause:
                            ``(iii) the entire amount received 
                        (including money and other property) is paid 
                        into an ABLE account for the benefit of the 
                        child or grandchild of such individual not 
                        later than the 60th day after the day on which 
                        the payment or distribution is received.''.
                    (D) Reports.--Paragraph (2) of section 6693(a) of 
                such Code is amended by striking ``and'' at the end of 
                subparagraph (D), by striking the period at the end of 
                subparagraph (E) and inserting ``and'', and by 
                inserting after subparagraph (E) the following new 
                subparagraph:
                    ``(F) section 530A(g) (relating to ABLE 
                accounts).''.
                    (E) Exclusion from income under ssi.--Subsection 
                (b) of section 1612 of the Social Security Act (42 
                U.S.C. 1382a) is amended by striking ``or'' at the end 
                of paragraph (22), by striking the period at the end of 
                paragraph (23) and inserting ``; or'', and by inserting 
                after paragraph (23) the following:
            ``(24) any contribution to an ABLE account.''.
                    (F) Clerical amendment.--The table of parts for 
                subchapter F of chapter 1 of such Code is amended by 
                inserting after the item relating to part VIII the 
                following new item:

        ``Part IX. Savings for Individuals With Disabilities.''.

    (b) Annual Reports.--
            (1) In general.--The Secretary of the Treasury, in 
        consultation with the Secretary of Health and Human Services, 
        shall report annually to Congress on the usage of ABLE accounts 
        under section 530A of the Internal Revenue Code of 1986.
            (2) Contents of report.--Any report under paragraph (1) 
        shall include--
                    (A) the number of people with an ABLE accounts,
                    (B) the total amount of contributions to such 
                accounts,
                    (C) the total amount and nature of distributions 
                from such accounts,
                    (D) issues relating to the abuse of such accounts, 
                if any, and
                    (E) the amounts repaid from such accounts to State 
                Medicaid programs established under title XIX of the 
                Social Security Act.
    (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. 4. DEDUCTION FOR CONTRIBUTIONS TO ABLE ACCOUNTS.

    (a) Deduction.--
            (1) In general.--Part VII of subchapter A of chapter 1 of 
        the Internal Revenue Code of 1986 is amended by redesignating 
        section 224 as section 225 and inserting after section 223 the 
        following new section:

``SEC. 224. CONTRIBUTIONS TO ABLE ACCOUNTS.

    ``(a) Allowance of Deduction.--In the case of a qualified 
individual, there shall be allowed as a deduction an amount equal so 
much of the qualified disability savings contributions made during the 
taxable year as do not exceed $2,000.
    ``(b) Limitations.--
            ``(1) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be taken into account under subsection 
                (a) for the taxable year shall be reduced (but not 
                below zero) by the amount determined under subparagraph 
                (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so taken into 
                account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for the taxable 
                                year, over
                                    ``(II) the applicable amount, bears 
                                to
                            ``(ii) the phaseout amount.
                    ``(C) Applicable amount; phaseout amount.--For 
                purposes of subparagraph (B), the applicable amount and 
                the phaseout amount shall be determined as follows:


------------------------------------------------------------------------
                                                   ``The         The
                                                 applicable    phaseout
                                                 amount is:   amount is:
------------------------------------------------------------------------
In the case of a joint return.................      $60,000      $10,000
In the case of a head of household............      $45,000       $7,500
In any other case.............................      $30,000      $5,000.
------------------------------------------------------------------------

                    ``(D) Modified adjusted gross income.--For purposes 
                of this paragraph, the term `modified adjusted gross 
                income' means the adjusted gross income of the taxpayer 
                for the taxable year increased by any amount excluded 
                from gross income under section 911, 931, or 933.
                    ``(E) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2010, 
                each of the applicable amounts in the second column of 
                the table in subparagraph (C) shall be increased by an 
                amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2009' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $500.
            ``(2) Earned income limitation.--The amount of any 
        deduction allowed under subsection (a) with respect to any 
        taxpayer shall not exceed the earned income (as defined by 
        section 32(c)(2)) of such taxpayer for such taxable year
    ``(c) Qualified Individual.--For purposes of this section, the term 
`qualified individual' means an individual with a disability (as 
defined in section 530A(b)) who is the designated beneficiary of an 
ABLE accounts (as defined by section 530A(a)).
    ``(d) Qualified Disability Savings Contributions.--The term 
`qualified disability savings contributions' means, with respect to any 
taxable year, the aggregate contributions made by the taxpayer to the 
ABLE account for an individual with a disability (as so defined) with 
respect to which such taxpayer is the qualified individual.
    ``(e) Treatment of Contributions by Dependent.--If a deduction 
under section 151 with respect to an individual is allowed to another 
taxpayer for a taxable year beginning in the calendar year in which 
such individual's taxable year begins--
            ``(1) no deduction shall be allowed under subsection (a) to 
        such individual for such individual's taxable year, and
            ``(2) any qualified disability savings contributions made 
        by such individual during such taxable year shall be treated 
        for purposes of this section as made by such other taxpayer.''.
            (2) Conforming amendments.--The table of sections for part 
        VII of subchapter A of chapter 1 of the Internal Revenue Code 
        of 1986 is amended redesignating the item relating to section 
        224 as relating to section 225 and by inserting after the item 
        relating to section 223 the following new item:

``Sec. 224. Contributions to ABLE accounts.''.
    (b) Study.--
            (1) In general.--The Secretary of the Treasury (or the 
        Secretary's delegate), in consultation with the Secretary of 
        Health and Human Services, shall conduct a study on the use of 
        ABLE accounts (as defined by section 530A(a) of the Internal 
        Revenue Code) and the effect of the deduction allowed under 
        section 224 of such Code for contributions to such accounts. 
        Such study shall consider the effect that a tax credit or a 
        refundable matching tax credit would have on the use of and 
        contributions to such accounts.
            (2) Report.--Not later than 5 years after the date of the 
        enactment of this Act, the Secretary of the Treasury shall 
        report to Congress on the study conducted under paragraph (1).
    (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. 5. TREATMENT OF ABLE ACCOUNTS UNDER CERTAIN FEDERAL PROGRAMS.

    (a) Treatment as a Medicaid Excepted Trust.--Paragraph (4) of 
section 1917(d) of the Social Security Act (42 U.S.C. 1396p(d)(4)) is 
amended by adding at the end the following new subparagraph:
            ``(D) A trust which is an ABLE account described in section 
        530A(b)(1) of the Internal Revenue Code of 1986.''.
    (b) Account Funds Disregarded for Purposes of Certain Other Means-
Tested Federal Programs.--Notwithstanding any other provision of 
Federal law that requires consideration of 1 or more financial 
circumstances of an individual, for the purpose of determining 
eligibility to receive, or the amount of, any assistance or benefit 
authorized by such provision to be provided to or for the benefit of 
such individual, any amount (including earnings thereon) in any ABLE 
account of such individual, and any distribution for qualified 
disability expenses (as defined in section 530A(b)(2)) shall be 
disregarded for such purpose with respect to any period during which 
such individual maintains, makes contributions to, or receives 
distributions from such ABLE account.
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