Sen. Jim Webb (D-Va.) co-sponsored the bipartisan Achieving a Better Life Experience (ABLE) Act, a bill that will allow people with disabilities to more easily save for necessary expenses.
Tax-exempt ABLE Accounts allow families and individuals to set aside funds for disability-related expenses, including medical care, housing, education, and employment training. The accounts will function similarly to the 529 Education Savings Plan accounts that allow families to save for their child’s future college expenses.
“Those with disabilities shouldn’t have to choose between safeguarding their eligibility for long-term services and saving for their future,” said Sen. Webb, who has also supported initiatives to increase federal assistance for children with disabilities. “The ABLE Act is one step toward ensuring these families have the opportunity to save for disability-related expenses without incurring harmful financial set-backs.”
Currently, individuals with disabilities face a number of barriers to saving, including asset limits imposed by federal programs like Medicaid and the Supplemental Security Income (SSI) program. These limits may discourage beneficiaries with disabilities from saving in order to maintain eligibility.
The ABLE Act creates an option to save for long-term expenses in a tax-exempt account that would not count toward such asset limits.
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