Advocates pushed Congress to vote on the Achieving a Better Life Experience (ABLE) Act which would allow people with disabilities to open tax-advantaged savings accounts. On December 3, the bill was voted on and passed in the house. It is currently waiting for the senate vote. The bill is co-sponsored by 85 percent of the members of Congress (74 senators and 380 representatives) including a North Dakota Representative Kevin Cramer. The ABLE Act has been in development for about eight years.
This legislation would amend current tax code to create tax-free savings accounts for people with disabilities to cover qualified expenses such as education, housing, and transportation. The ABLE Act would supplement benefits provided through private insurance, Medicaid, and other sources. It is important to note that the ABLE Act would not change the benefits provided.
People with disabilities often have limits to earning and saving money which creates barriers for employment, independent living and self-sufficiency. The limits also affect decisions such as whether parents of children with disabilities can leave them estates or the family home to ensure their well-being. The bill would allow beneficiaries to keep up to $100,000 in the tax-advantaged accounts.
Some feel this legislation is an expansion of welfare programs, but it isn’t. This bill allows a tax-advantage. The money that enters the account would come from friends and family, not the state.