In lieu of retirement plan contributions, a bipartisan bill cosponsored on Dec. 5 by U.S. Rep. Brian Fitzpatrick (R-PA) would allow employers to contribute to ABLE accounts, which are special savings accounts for people with disabilities.
The ABLE Employment Flexibility Act, H.R. 10302, which is sponsored by U.S. Rep. Sharice Davids (D-KS), would enable employers to make tax-free contributions to these accounts, offering greater flexibility in hiring and retaining employees with disabilities while helping these workers achieve greater financial independence, according to a bill summary provided by the lawmakers.
“Individuals with disabilities deserve the freedom to access employee benefits and save for retirement without risking their eligibility for critical federal programs,” Rep. Fitzpatrick said. “By eliminating unnecessary barriers, our bipartisan legislation takes a bold step in protecting essential supports like the ABLE program while empowering employees with disabilities to achieve financial security and thrive in the workplace. This is about breaking down barriers and ensuring equal opportunity for all.”
Currently, many employers offer 401(k) matching contributions as a benefit of employment. However, workers with disabilities are often excluded from taking advantage of this option due to strict federal asset limits tied to programs like Supplemental Security Income (SSI).
If enacted, H.R. 10302 would address this disparity by allowing employers to make tax-exempt contributions to employees’ ABLE accounts instead of traditional 401(k) accounts, allowing them to save without jeopardizing the federal support they rely on, the summary says.
“Workers with disabilities should have the same access to employer benefits as anyone else, including the ability to save for their future,” said Rep. Davids. “I introduced this bill to ensure that workers with disabilities can build financial security without sacrificing the federal benefits that help them succeed. It’s a commonsense fix that promotes equity, independence, and economic opportunity for millions of Americans.”
The National Down Syndrome Congress endorsed H.R. 10302, which has been referred for consideration to the U.S. House Ways and Means Committee.