Robin SmithA U.S. House and Senate known for gridlock may be on the verge of passing legislation that is not only bipartisan but has a positive benefit for citizens.
The ABLE Act — Achieving a Better Life Experience — introduced in 2013 by U.S. Rep. Ander Crenshaw, R-Fla., and U.S. Sen. Robert Casey, D-Pa., establishes tax-free savings accounts for those with disabilities and the parents of children with disabilities. The proposal now has 74 Senate co-sponsors and 367 House co-sponsors.
The current Internal Revenue Code allows someone with a disability to have only $2,000 in a savings account and to earn no more than $700 per month before eligibility for federal benefits, like Medicare and Supplemental Security Income, is affected.
Legislators are motivated by the common sense that by discouraging savings for those with disabilities, the federal government is all but guaranteeing that these fragile dependents’ futures are tied to taxpayer-funded benefits. It also guarantees the parents of these fragile dependents have few to no options to prepare for their children’s future in their absence.
The legislation (S. 313/H.R. 647) specifically permits savings toward “qualified disability expenses.” These are defined in the legislation to include education from preschool through post-secondary learning; housing as a primary residence; transportation expenses; employment support to maintain and obtain a job; health, prevention, and wellness to defray additional health costs; and “miscellaneous expenses” that include financial and legal management fees through burial arrangements.