The House and Senate tax bills include a provision that allows the rollover of funds from a Qualified Tuition Program into a Qualified ABLE Program. Additionally, the Senate tax bill includes a provision that increases the annual contribution limit for ABLE accounts for beneficiaries who work by the amount they earn, up to the federal poverty level. The Arc does not support passage of any ABLE Act changes until the age of onset is substantially increased. Learn more about The Arc’s position on ABLE Act improvement here.
Recently, Colorado, Indiana, and New York opened qualified ABLE programs, bringing the total number of jurisdictions with ABLE programs to 29.
Colorado and Indiana’s ABLE programs are open to all eligible individuals nation-wide. They have six investment options and a checking option with a debit card. The accounts have a quarterly fee of $15, which is reduced by $3.75 for individuals who elected to receive their statements electronically. Additionally, they have asset-based fees ranging from 0.34% to 0.38% depending on the investment options chosen.
New York‘s ABLE Program is currently only open to state residents. It has four investment options and a checking account with a debit card. Accounts have a quarterly fee of $11.25 for account-holders who receive electronic statements and $13.75 for account-holders who receive paper statements. Additionally, there is a 0.4% asset-based fee on investment options.
More information about state implementation of the ABLE Act can be found here. General information about ABLE programs can be found in the National Policy Matters: ABLE Accounts for People with Disabilities here.
On February 27, Vermont became the 17th state to launch a qualified ABLE Program. This program is currently only open to Vermont residents. The plan has five investment options. There is a monthly fee of $5 and annual asset-based fees that range from 0.19% to 0.34% depending on the investment option. Additionally, there is a minimum initial deposit of $50. More information about state implementation the ABLE Act can be found here. General information about ABLE programs can be found in the National Policy Matters: ABLE Accounts for People with Disabilities here.
The ABLE National Resource Center has developed a survey to better understand how many individuals might be eligible for ABLE accounts and how a potential beneficiary may use an ABLE account to save for disability related expenses. The results will be analyzed by the ABLE National Resource Center and distributed to its members and other relevant stakeholders. The Arc encourages advocates to distribute the survey widely through social media, email, and newsletters. It is hoped that all responses will be submitted by August 3rd, though distribution is still encouraged through the end of August. To participate in the survey, please click here. If you have any questions, please contact Chris Rodriguez at the National Disability Institute.
In December 2014, the Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act was signed into law. Since that time, over 50% of the states have passed their own version(s) of the bill and are now turning their attention to implementing the program. In an effort to assist individuals with I/DD, their families, and advocates in tracking their states’ progress in this endeavor, The Arc has produced a resource outlining each state’s implementation status. This chart details the effective date and the implementation date of their state’s Act; contact information for the administering agency; as well as any current details on implementation. The Arc plans to update this document regularly in an effort to provide the most current information, as well as to manage expectations as to the availability of ABLE accounts in a particular state. If you would like to view this document, please do so on our website.
On June 19, the Internal Revenue Service issued proposed regulations for implementation of the Achieving a Better Life Experience (ABLE) Act of 2014. These proposed regulations, titled Guidance Under Section 529A: Qualified ABLE Programs, were published in the Federal Register on June 22. Public comments are due on September 21, 2015. The IRS also announced a public hearing scheduled for October 14, 2015.
The proposed regulations address numerous issues, including the following: the relationship of a person with signature authority and the designated beneficiary of the account; qualifications for eligibility; status of an ABLE account when person is no longer disabled; limits on contributions to the account; potential penalties; and qualified expenses. The Arc and other advocates will be analyzing the proposed regulations in preparation for submitting comments.
In December 2014, the Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act was signed into law. Since that time, states have started to develop their own legislation to implement the federal law. As a result, in over half of the states, ABLE Act legislation has emerged in the past several months. To assist individuals with I/DD, their families, and advocates in tracking their states’ progress, The Arc has produced a comprehensive listing of state-by-state legislation. This can be used as an advocacy tool and offers valuable information, such as names and contact information of sponsors, current status of the bill(s), and a link to bill language. The Arc plans to update this document on a weekly basis in an effort to provide the most current information. If you would like to view this document, please do so from The Arc’s website.
On March 10, the Internal Revenue Service (IRS) announced Notice 2015-18 to provide advance notification of a provision it expects to be included in the proposed regulations for section 529A of the Internal Revenue Code regarding ABLE Act accounts. The notice makes two important points:
- First, the “Treasury Department and the IRS do not want the lack of guidance to discourage states from enacting their enabling legislation and creating their ABLE programs, which could delay the ability of the families of disabled individuals or others to begin to fund ABLE accounts for those disabled individuals. Therefore, the Treasury Department and the IRS are assuring states that enact legislation creating an ABLE program in accordance with section 529A, and those individuals establishing ABLE accounts in accordance with such legislation, that they will not fail to receive the benefits of section 529A merely because the legislation or the account documents do not fully comport with the guidance when it is issued. The Treasury Department and the IRS intend to provide transition relief with regard to necessary changes to ensure that the state programs and accounts meet the requirements in the guidance, including providing sufficient time after issuance of the guidance in order for changes to be implemented.”
- Second, the Treasury Department and the IRS advise the states that the ABLE Act guidance, when issued, may differ in various ways from the current section 529 education programs. “In particular, the Treasury Department and the IRS currently anticipate that, consistent with section 529A(e)(3), the guidance will provide that the owner of an ABLE account is the designated beneficiary of the account. In addition, the Treasury Department and the IRS currently anticipate that the section 529A guidance will provide that, with regard to the ABLE account of a designated beneficiary who is not the person with signature authority over that account, the person with signature authority over the account of the designated beneficiary may neither have nor acquire any beneficial interest in the account and must administer that account for the benefit of the designated beneficiary of that account.”
These are both important clarifications for states moving forward with legislation. The IRS notice can be found at the IRS website.
In collaboration with The Arc, National Disability Institute, Autism Speaks, National Down Syndrome Society, and the College Plan Savings Network, The ABLE National Resource Center will host a webinar titled “Understanding ABLE” on Thursday, March 26, 2015 at 2 PM EDT. The event will cover ABLE Act core components, as well as the status of implementation at both the federal and state levels. Marty Ford, Senior Executive Officer for Public Policy, The Arc is one of the featured speakers. Registration for this important event is now open and will be taken on a first come, first serve basis, Should you wish to join us, please sign up online.
Please note: Real time captioning will be provided for this webinar. For other accommodation requests, questions about the webinar, or the registration process, please contact James Thayer.