ABLE accounts

AN ACT Relating to encouraging achieving a better life experience 1
accounts; amending RCW 43.330.464; adding a new section to chapter 2
43.330 RCW; and creating a new section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The legislature finds that:5
(1) In 2016, legislation was enacted to implement the Washington 6
achieving a better life experience (ABLE) program to allow persons 7
with qualifying disabilities to create tax-advantaged savings 8
accounts known as ABLE accounts. Eligible individuals currently 9
include persons with significant physical, behavioral, developmental, 10
or military disabilities with an age of onset of disability before 11
turning 26 years of age. Eligible individuals can contribute their 12
own earnings to their ABLE accounts as well as accept contributions 13
from family members and employers. ABLE accounts can be used to fund 14
a wide range of expenses related to the eligible individual's 15
disability without risking eligibility for means-tested public 16
benefits such as medicaid and supplemental security income.17
(2) Increasing participation in the ABLE program helps the 18
individual by increasing self-reliance, encouraging employment, and 19
improving quality of life, and helps the program by keeping account 20
fees low. Recognizing the benefits of the ABLE program, congress 21
S-1100.1
SENATE BILL 5648
State of Washington 69th Legislature 2025 Regular Session
By Senator Braun
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recently enacted the ABLE age adjustment act that would raise the 1
threshold for the onset of a qualifying disability to age 46 2
beginning January 2026. The purpose of this act is to encourage 3
participation in the ABLE program by providing funding for program 4
promotion, reducing individual account fees, and to contribute 5
funding to ABLE accounts. 6
NEW SECTION. Sec. 2. A new section is added to chapter 43.330 7
RCW to read as follows: 8
(1) The encouraging achieving a better life experience account, 9
also known as the ENABLE account, is created in the custody of the 10
state treasurer. Moneys from legislative appropriations and 11
transfers, federal funds, public or private donations, gifts, and 12
grants, and any other lawful source may be deposited into the 13
account. Expenditures from the account may be used only for the 14
following purposes in the following priority: 15
(a) Up to $250,000 or 0.25 percent of the balance of the account 16
on July 1st of each fiscal year, whichever is less, may be used for 17
administrative and promotional expenses for that fiscal year;18
(b) Reducing or eliminating fees charged against individual 19
Washington achieving a better life experience program accounts to 20
administer or invest moneys in each account, up to a maximum of $50 21
annually per account; 22
(c) Depositing $1,000 into each individual Washington achieving a 23
better life experience program account in existence on July 1, 2025; 24
and 25
(d) Depositing $1,000 into each new individual Washington 26
achieving a better life experience program account opened in 27
Washington state after July 1, 2025, or an existing account rolled 28
over into an individual Washington achieving a better life experience 29
program account after July 1, 2025. 30
(2) Only the director of the Washington achieving a better life 31
experience governing board or the board's designee may authorize 32
expenditures from the account. The account is subject to allotment 33
procedures under chapter 43.88 RCW, but an appropriation is not 34
required for expenditures. If any deposit from the ENABLE account 35
into an individual Washington achieving a better life experience 36
program account would result in the individual exceeding the 37
contribution limit allowed under internal revenue service 38
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regulations, the individual may defer the ENABLE deposit for up to 1
two years to prevent exceeding the limit. 2
Sec. 3. RCW 43.330.464 and 2018 c 76 s 3 are each amended to 3
read as follows: 4
(1) The governing board may elect to have the state investment 5
board or investment manager invest the money in the Washington 6
achieving a better life experience program account. If the governing 7
board so elects, the state investment board created in RCW 43.33A.020 8
or the investment manager has the full power to invest, reinvest, 9
manage, contract, sell, or exchange investment money in the 10
Washington achieving a better life experience program account. All 11
investment and operating costs associated with the investment of 12
money by the state investment board must be paid pursuant to RCW 13
43.33A.160 and 43.84.160. With the exception of these expenses, the 14
earnings from the investment of the money must be retained by the 15
account. 16
(2)(a) After consultation with the governing board, the state 17
investment board or investment manager may elect to invest any self-18
directed accounts associated with the Washington achieving a better 19
life experience program. The state investment board or investment 20
manager has full authority to invest all self-directed investment 21
moneys in accordance with this section and RCW 43.84.150. In carrying 22
out this authority the state investment board or investment manager, 23
after consultation with the governing board regarding any 24
recommendations, shall provide a set of options for eligible 25
individuals to choose from for self-directed investment. Any self-26
directed investment options provided must comply with section 529A of 27
the federal internal revenue code of 1986, as amended.28
(b) ((All)) Except as provided in section 2 (1)(b) of this act, 29
all investment and operating costs of the state investment board or 30
investment manager associated with making self-directed investments 31
must be paid by eligible individuals and recovered under procedures 32
agreed to by the governing board and the state investment board or 33
investment manager consistent with the principles set forth in RCW 34
43.33A.160. ((All)) Except as provided in section 2 (1)(b) of this 35
act, all other expenses caused by self-directed investments must be 36
paid by the eligible individual in accordance with rules established 37
by the governing board. With the exception of these expenses, all 38
earnings from self-directed investments shall accrue to the eligible 39
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individual's Washington achieving a better life experience program 1
account. 2
(c)(i) The governing board shall keep or cause to be kept full 3
and adequate accounts and records of each eligible individual 4
Washington achieving a better life experience program account.5
(ii) The governing board shall account for and report on the 6
investment of self-directed assets or may enter into an agreement 7
with the recordkeepers for such accounting and reporting under this 8
chapter. 9
(iii) The governing board's duties related to eligible individual 10
Washington achieving a better life experience program accounts 11
include conducting(([,])), or causing to be conducted, the activities 12
of trade instruction, settlement activities, and direction of cash 13
movement and related wire transfers with the custodian bank and 14
outside investment firms. 15
(iv) The governing board has sole responsibility for contracting 16
with any recordkeepers for individual Washington achieving a better 17
life experience program accounts and shall manage the performance of 18
recordkeepers under those contracts. 19
(v) The governing board has sole responsibility for contracting 20
with outside investment firms to provide investment management for 21
the individual Washington achieving a better life experience program 22
accounts and shall manage the performance of investment managers 23
under those contracts. 24
(vi) The governing board must contract with an organization to 25
promote and encourage eligible individuals to open individual 26
Washington achieving a better life experience program accounts as 27
well as making contributions to existing or rolled over individual 28
accounts. If the recordkeeper or outside investment firm contracted 29
by the governing board under (c)(iv) or (v) of this subsection can 30
perform this function, the governing board may revise any existing 31
contract for this purpose without engaging in a competitive process 32
required under chapter 39.26 RCW.33
(d) The governing board shall designate and define the terms of 34
engagement for the custodial banks under authority that the state 35
treasurer shall delegate pursuant to RCW 43.08.015 with the 36
concurrence of the office of financial management.37
(3) All investments made by the state investment board must be 38
made with the exercise of that degree of judgment and care pursuant 39
p. 4 SB 5648
to RCW 43.33A.140 and the investment policy established by the state 1
investment board. 2
(4) As deemed appropriate by the state investment board, money in 3
the account may be commingled for investment with other funds subject 4
to investment by the state investment board. 5
(5) The authority to establish all policies relating to the 6
account resides with the governing board acting to implement, design, 7
and manage the Washington achieving a better life experience savings 8
program that allows eligible individuals to create and maintain 9
savings accounts. The moneys in the account may be spent only for the 10
purposes of the Washington achieving a better life experience 11
program. 12
(6) The investment manager shall routinely consult and 13
communicate with the governing board on the investment policy, 14
earnings of the account, and related needs of the program.15
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