Disability advocates celebrated
this month as the Achieve a Better Life Experience (ABLE) Act was re-introduced
on Capitol Hill on November 15. The bipartisan bill will provide tax exemptions
for disabled individuals to save money for specified costs including life-long
education, medical bills, transportation, or other long term expenses related
to their disability. This exemption, however, will not replace Medicaid,
Medicare, or Social Security benefits but rather serve to supplement the funds
already being received. Since its November introduction by Rep. Ander Crenshaw
(R-FL) and Sen. Robert Casey (D-PA), the ABLE Act has been assigned to the
Senate Finance Committee to be reviewed before it is voted on by the Senate.
Modeled on the 529 college savings plan, the proposed legislation will allow
any interest earned in an ABLE savings account to be tax-free. Up to $100,000
can be saved before Medicaid benefits are jeopardized.
The bill was previously introduced
in May of 2009, though the Congress session ended before a vote could be taken.
Its former lack of success was due to “timing alone” according to the NYAPRS ENEWS
report. At present, the Act has already garnered support from
both parties as well as strong backing from the National Disability Institute,
Autism Speaks, and other disability advocacy groups.
The proposed ABLE Act could serve
as one viable way for some individuals on Social Security to attain fiscal
independence. As the ABLE Act navigates its way
through Congress, support of the bill is vital for individuals to have the
ability to successfully reach a self-sustainable
financial situation and have the cushion of savings to be able to accommodate
the unexpected challenges that life brings.The effects of this bill may be
strongest for those with access to resources already, but it is nevertheless a
strong step in acknowledging the need changes to our tax systems that allow
everyone to plan and save for the future.
- Katie J.
