The ABLE MATCH Act establishes a federal matching payment, up to \$2,000 annually, for self-contributions to an individual's ABLE account, subject to income phaseouts, and funds state grants to promote ABLE account usage.
Chris Van Hollen
Senator
MD
The ABLE MATCH Act establishes a federal program to match contributions made by individuals to their own ABLE accounts, offering a 100% match up to \$2,000, subject to an income-based phaseout. This new benefit aims to increase savings for people with disabilities, starting in tax years after 2026. The bill also mandates demographic reporting for ABLE account beneficiaries and authorizes grants to states to promote the use of these accounts and the new matching contribution.
Federal Government to Offer $2,000 Matching Contribution for Disability Savings Accounts Starting in 2027
The ABLE MATCH Act is a direct push to help people with disabilities build a financial safety net. Starting in tax years after December 31, 2026, the federal government will provide a dollar-for-dollar match on contributions made to ABLE accounts (tax-advantaged savings accounts for individuals with disabilities). If you put $2,000 of your own money into your account, the government drops another $2,000 in right next to it. This match is capped at $2,000 annually and is deposited directly into the ABLE account, effectively doubling the savings power for eligible individuals.
The Income Sliding Scale
While the 100% match sounds great, it isn’t a flat rate for everyone. The bill includes an income phaseout to target the help toward those who need it most. For single filers, the full match starts to shrink once your modified adjusted gross income (MAGI) hits $28,000. If you’re a head of household, that threshold is $42,000, and for married couples filing jointly, it’s $56,000 (Section 2). For every dollar you earn over these limits, the match percentage ticks down. If your income exceeds the threshold by $20,000 or more, the match disappears entirely. To keep up with the world getting more expensive, the $56,000 joint threshold will be adjusted for inflation starting in 2027.
Rules of the Road
To prevent people from simply cycling money in and out to game the system, the bill uses a "testing period." Your qualified contributions are calculated by taking what you put in and subtracting any distributions you took during the current year, the two previous years, and the window before your tax deadline. However, money spent on "qualified disability expenses"—like healthcare, housing, or transportation—doesn't count against you (Section 2). Importantly, this government match is protected; it cannot be seized by the Treasury to pay off old federal debts or back taxes. It also doesn't count toward the standard annual contribution limit for ABLE accounts, meaning you can still save your own max amount on top of the government’s help.
Beyond the Bank Account
The bill also focuses on the bigger picture of how these accounts are used. Section 3 requires state programs to start reporting demographic data on who is actually using ABLE accounts, which helps policy makers see if certain communities are being left behind. To make sure people actually know this money is available, the bill authorizes $5 million in annual grants from 2027 through 2030 for states to promote the accounts (Section 4). Whether you’re a gig worker with a disability trying to build an emergency fund or a parent helping a child save for the future, this legislation aims to make that path a little less steep by providing a literal 100% return on investment for those under the income caps.