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ABLE Account (Achieving a Better Life Experience Account)

A tax-advantaged savings account for individuals with disabilities, allowing them to save money for qualified disability expenses without losing eligibility for certain public benefits like Medicaid or Supplemental Security Income (SSI).

Internal Revenue Code

The body of law in the United States that governs federal taxation, enforced by the Internal Revenue Service (IRS).

Defined Contribution Plan

A type of retirement plan where the employer and/or employee contribute regularly, like a 401(k) or 403(b). The retirement benefit depends on the investment performance of the account.

Eligible ABLE Individual

An employee who meets the disability criteria for an ABLE account (meaning they became blind or had a significant disability before age 26).

Nondiscrimination Rules

IRS rules that ensure employer-sponsored retirement plans do not unfairly favor highly compensated employees over rank-and-file employees in terms of contributions or benefits.

Cash or Deferred Arrangement (CODA)

A retirement plan feature, typically found in 401(k) plans, that allows employees to choose between receiving cash or deferring a portion of their salary into the plan.