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ABLE Account

A special savings account for people with disabilities that allows them to save money for qualified expenses (like education, housing, transportation, and health care) without losing eligibility for certain government benefits like Medicaid or Supplemental Security Income (SSI).

529 Program

A tax-advantaged savings plan designed to encourage saving for future education costs, often used for college tuition and related expenses.

Savers Credit

A tax credit offered by the federal government designed to help low- and middle-income individuals offset the cost of saving for retirement or, under this bill, for disability expenses in an ABLE account.

Internal Revenue Code (IRC)

The official body of laws in the United States that governs federal taxation, including rules for various types of savings accounts and tax credits.

Gift Tax Exclusion

The maximum amount of money one person can give to another in a single year without the giver having to pay gift tax or report the gift to the IRS.

Eligible Beneficiary

For an ABLE account, this refers to an individual who developed a qualifying disability before their 26th birthday.