Senator Schmitt Introduces Bipartisan Effort to Expand Savings Options for Employees with Disabilities

WASHINGTON – U.S. Senator Eric Schmitt (R-MO) helped introduce the ABLE Employment Flexibility Act, a bipartisan bill which allows employers of individuals with disabilities to contribute to their ABLE accounts as if they were a 401(k) without making the beneficiary ineligible for federal benefits.

“Individuals with disabilities who work deserve the same access to employment benefits as their peers. This bipartisan legislation provides greater flexibility to employers and allows workers with disabilities to build secure financial futures without jeopardizing the federal benefits they need to live fulfilling and productive lives,” said Senator Schmitt.

Senator Schmitt introduced this legislation alongside Senators Amy Klobuchar (D-MN), Jerry Moran (R-KS), and Chris Van Hollen (D-MD).

Background:

1. Many employers offer 401(k) matching contributions as a benefit of employment. However, employees with disabilities are often unable to take advantage of these benefits due to asset limits that could interfere with federal benefits, such as Medicaid and Supplemental Security Income (SSI). Senators Schmitt and Klobuchar’s bill addresses this disparity and ensures that employees with disabilities can invest for their future without jeopardizing federal benefits.
2. Currently, there are over 162,000 Achieving a Better Life Experience (ABLE) accounts, which allow individuals with disabilities and their families to save and invest through tax-free savings accounts without losing eligibility for federal programs like Medicaid and SSI.
3. On July 4^th, 2025, Senator Schmitt’s ENABLE Act was included in President Trump’s One Big Beautiful Bill Act (OBBBA) and signed into law. The provision within OBBBA would codify several key provisions related to ABLE accounts that were set to expire at the end of 2025.

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