This week the Achieving a Better Life Experience, or ABLE Act, passed with significant bipartisan support in the U.S. House of Representatives by a vote of 404 to 17. The measure moves next to the Senate.
Currently, many individuals with disabilities are unable to accrue and own more than $2,000 in assets or risk loosing needed government benefits such as Medicaid, Medicare, and Social Security. Under the ABLE Act, individuals whom rely on necessary benefits will finally have the opportunity to save for the future.
With the ABLE Act, an individual could establish an account at any financial institution where one could annually save up to $14,000 under current gift-tax limitations. The account could eventually accrue up to $100,000 without jeopardizing eligibility for Social Security and Medicare. Importantly, the legislation would ensure that those with disabilities could still retain Medicaid coverage no matter the balance in their ABLE account. Similarly, interest earned on savings in the account would be tax-free like 529 college savings plans.
ABLE account funds could be used to pay for education, health care, transportation, housing and other expenses, which the bill’s lead sponsor, Rep. Ander Crenshar, R-Fla., expressed is only fair for people with disabilities to do in order to pay for college, health care and retirement.
“What this does is simply give individuals with disabilities a chance at the American dream,” Crenshaw said speaking on the House floor ahead of the vote.
- Elizabeth -