The ABLE National Resource Center (ANRC) is a collaborative entity whose supporters share the goal of accelerating the design and availability of ABLE accounts for the benefit of individuals with disabilities and their families. The ANRC brings together the investment, support and resources of the country’s largest and most influential national disability organizations.
Among the resources available via the ANRC are reviews of state ABLE programs in those states that have enacted enabling legislation, video and documents relating to past ABLE webinars, and updates on legislative activity. ANRC reports as follow regarding newly introduced legislation to amend the federal ABLE Act:
On March 17, a bi-partisan group of Members of Congress, including Senators Richard Burr (R-NC) and Bob Casey (D-PA) and Representatives Ander Crenshaw (R-FL), Cathy McMorris Rodgers (R-WA), Chris Van Hollen (D-MD), and Pete Sessions (R-TX), introduced a package of bills aimed at enhancing the benefits provided through the Stephen Beck Jr., Achieving a Better Life Experience (ABLE) Act. This package of bills includes the “ABLE to Work” Act, the “ABLE Financial Planning” Act, and the “ABLE Age Adjustment” Act. The cumulative goal of these bills is to build on the success of the ABLE Act by increasing the amount of funds which can be contributed to the accounts, allow for more flexibility in terms of certain rollovers, and by expanding the number of individuals eligible to open an ABLE account. The following are brief summaries of the three pieces of proposed legislation:
The ABLE to Work Act expands on the goals of the ABLE Act by encouraging work and self-sufficiency. The legislation allows individuals and their families to save more money in an ABLE account if the beneficiary works and earns income. Specifically, an ABLE beneficiary who earns income from a job could save up to the Federal Poverty Level, which is currently at $11,770. The bill will also allow ABLE beneficiaries to qualify for the existing Saver’s Credit when they put savings in.
The ABLE Financial Planning Act would allow families to rollover savings in a 529 college savings plan into an ABLE account. Many families save for a child’s college education by opening a 529 account, sometimes before their child is even born, only to learn later that their child has a severe disability like autism. In other cases, a child is in a tragic accident and becomes severely disabled. In such instances, these families have funds trapped in a 529 that they could use to help cover their child’s lifelong expenses. If they withdraw the funds for anything other than college expenses, they face taxes on their withdrawals. The ABLE Financial Planning Act would help these families by allowing them to rollover the funds in their 529 account into an ABLE account for their disabled child.
The ABLE Age Adjustment Act will raise the age limit for ABLE accounts to age 46. Currently, individuals with a severe disability prior to the age of 26 are eligible to open an ABLE account. Many debilitating diseases and conditions can strike later in life, including multiple sclerosis, Lou Gehrig’s disease, or paralysis due to an accident. Increasing the age limit for ABLE accounts will allow more individuals to save in these accounts to help cover the costs of short, medium and long-term care.