On March 17, the six lead sponsors of the original ABLE Act introduced three bills in both the Senate and the House of Representatives to increase the age of onset for eligibility for the ABLE Act and to make other improvements to the ABLE program. They are: Senators Bob Casey (D-PA), Richard Burr (R-NC), Representatives Ander Crenshaw (R-FL), Chris Van Hollen (D-MD), Cathy McMorris Rodgers (R-WA), and Pete Sessions (R-TX). Each has sponsored or co-sponsored all three bills in their respective chambers.
The ABLE Age Adjustment Act (S. 2704, H.R. 4813) would raise the age limit for eligibility for ABLE accounts to individuals disabled before age 46. Currently, only individuals with a severe disability prior to the age of 26 are eligible to open an ABLE account. Many disabling conditions can occur later in life. Increasing the age limit for ABLE accounts will allow more individuals to save for disability related expenses in ABLE accounts. Sponsors: Senator Casey and Rep. Van Hollen.
The ABLE Financial Planning Act (S. 2703, H.R. 4794) would allow families to rollover savings from a Section 529 college savings plan to an ABLE account. Many families save for a child’s college education by opening a 529 account, sometimes before their child is born. They face taxes on their withdrawals for anything other than college expenses. The ABLE Financial Planning Act would allow them to rollover the funds from their 529 account into an ABLE account for their child. Sponsors: Senator Casey and Rep. Crenshaw.
The ABLE to Work Act (S. 2702, H.R. 4795) would allow individuals and their families to save more money in an ABLE account if the beneficiary works and earns income. Specifically, an ABLE beneficiary who earns income from a job could save up to the Federal Poverty Level, which is currently at $11,770. The bill would also allow ABLE beneficiaries to qualify for the existing Saver’s Credit when they put savings in the account. Sponsors: Senator Burr and Rep. Crenshaw.
The Arc will work with Members and their staffs to secure passage of ABLE improvement legislation, particularly with a goal toward a significant increase in the age of eligibility for ABLE accounts.