The Achieving a Better Life Experience Act would level the playing field for individuals with autism (and other disabilities) and their families to save for disability-related expenses. Just as families can put away savings in tax-exempt accounts for children to go to college, the ABLE Act would allow such accounts for individuals with disabilities to cover their future education, housing, transportation and related expenses.
ABLE Accounts would resemble existing 529 college savings plans and would supplement, not replace, benefits provided through Medicaid, private insurance or employment.
ABLE Act News:
April 3 Update
Sen. Casey Rallies Support for ABLE During Light It Up Blue
NEW YORK -- Senator Bob Casey (D-PA) said he will step up efforts to build support in the U.S. Senate for the ABLE bill during a Light It Up Blue ceremony at the Empire State Building. Senator Casey, the prime Senate sponsor of ABLE (S.1872), joined with Autism Speaks Co-founder Bob Wright at the event.
ABLE has 14 Senate sponsors and over 125 House sponsors. The bill would establish tax-advantaged accounts for families to save for the future needs of their children with disabilities, including autism.
Autism Speaks, Disability Advocates Press Case for ABLE with Congress
WASHINGTON, DC (February 16, 2012) -- Autism Speaks joined with advocates from the nation’s other leading disability organizations today to make the case before Congress for ABLE—a bill that would allow families raising children with disabilities to save tax-free for their future needs.
The briefing was organized by Reps. Ander Crenshaw (R-FL), Chris Van Hollen (D-MD), and Cathy McMorris Rodgers (R-WA) all cosponsors of HR.3423, the House version of the Achieving a Better Life Experience (ABLE) Act. A panel of disability experts, including Stuart Spielman, senior policy counsel with Autism Speaks, addressed the briefing.
The Achieving a Better Life Experience Act would level the playing field for individuals with autism (and other disabilities) and their families to save for disability-related expenses. Just as families can put away savings in tax-exempt accounts for children to go to college, the ABLE Act would allow such accounts for individuals with disabilities to cover their future education, housing, transportation and related expenses. ABLE Accounts would resemble existing 529 college savings plans and would supplement, not replace, benefits provided through Medicaid, private insurance or employment.
Spielman noted the 600 percent increase in the prevalence of autism over the past two decades and the financial hardship encountered by many families caring for loved ones with autism. The ability to plan for the future needs of loved ones with autism would offer another resource for some families, he said.
John Ariale, Rep. Crenshaw’s chief of staff, said the bill was drafted so that SSI and Medicaid benefits would not be negatively impacted by opening an ABLE account. If the account balance reaches $100,000, SSI benefits would be suspended, he said. SSI benefits would resume if the account balance drops below $100,000.
Crenshaw and Van Hollen said the bill enjoys strong bipartisan support in both the House and the Senate, and already has over 90 House sponsors.
Qualified disability expenses under ABLE would include: school tuition and related educational materials; expenses for securing and maintaining a primary residence; transportation; employment supports; health prevention and wellness costs; assistive technology and personal support; and various miscellaneous expenses associated with independent living. Eligibility would extend to any individual who is receiving supplemental security income benefits or disability benefits under Title II of the Social Security Act, or “who has a medically determined physical or mental impairment, which results in marked and severe functional limitations” that can be verified by a physician.
Spielman noted that he and his wife were able to establish a traditional 529 account for their typically developing son to save for his college expenses, but are unable to do so for their other son who has autism to save for his future life needs. The ABLE act would improve the quality of life for individuals with disabilities, he said.
ABLE Coalition Grows to 49 Advocacy Organizations
WASHINGTON, DC -- A coalition of 49 disability rights advocacy organizations, including Autism Speaks, has joined in support of the Achieving a Better Life Experience (ABLE) Act of 2011 and urged both the House and Senate to move the bill quickly through Congress. Read more here.
Crenshaw Urges House to Support ABLE
November 17 -- Rep. Ander Crenshaw (R-FL), the sponsor of HR.3423, urged his House colleagues to support the ABLE Act of 2011 during a floor speech.
AUTISM SPEAKS JOINS IN SUPPORT OF BILL THAT WOULD CREATE TAX-FREE SAVINGS ACCOUNTS FOR PEOPLE WITH DISABILITIES
Proposed Achieving a Better Life Experience (ABLE) Act Would Help Pay for the Needs of Individuals with Autism and Other Disabilities
WASHINGTON, DC (November 15, 2011) --Autism Speaks, North America’s largest autism science and advocacy organization, today joined advocates for the disabled and congressional leaders in supporting the introduction of the Achieving a Better Life Experience (ABLE) Act of 2011, which would enable contributions to tax-free 529 savings accounts – similar to funds for college savings -- for people with autism and other disabilities.
The ABLE Act -- introduced today with bi-partisan support in the House (HR.3423) by Congressman Ander Crenshaw (R-FL) and Congresswoman Cathy McMorris Rodgers (R-WA), and in the Senate (S.1872) by Senators Robert Casey, Jr. (D-PA) and Richard Burr (R-NC)-- would amend Section 529 of the Internal Revenue Service Code to allow individuals with disabilities and their families to deposit earnings to tax-exempt savings accounts. The funds could be used to pay for qualified expenses, including education, housing and transportation, and would supplement, not replace, benefits provided through private insurance, employment or public programs.
“This is important, common sense legislation that will provide an incredible financial boost to families affected by autism and other disabilities who are struggling to pay for critical services,” said Bob Wright, Co-Founder of Autism Speaks. “If we allow families to save tax-free for college, it is only fair that they be permitted to save to meet the needs of all of their children.”
Autism Speaks joined with representatives from The Arc and the National Down Syndrome Society at a Capitol Hill press conference in announcing its support for the legislation.
“According to a Harvard School of Public Health study, the cost of caring for a person with autism will exceed $3 million over their lifetime,” said Peter Bell, Autism Speaks executive vice president of programs and services. “Providing care for adults with autism is often far more expensive than for children, yet there are fewer funding resources. As more and more of our children with autism age to adulthood, our hands remain tied in planning for their future. The need for new resources to provide them with necessary care and services is imperative.”
Qualified disability expenses would include: school tuition and related educational materials; expenses for securing and maintaining a primary residence; transportation; employment supports; health prevention and wellness costs; assistive technology and personal support; and various miscellaneous expenses associated with independent living.
Eligibility would extend to any individual who is receiving supplemental security income benefits or disability benefits under Title II of the Social Security Act, or “who has a medically determined physical or mental impairment, which results in marked and severe functional limitations” that can be verified by a physician.
Autism Speaks expressed its thanks to the bill sponsors for their leadership and will begin calling on all members of the House and Senate to sign on as cosponsors of this important legislation.
Summary of the ABLE ACT of 2011:
S. 1872 -- Sponsored by Senator Robert Casey, Jr (D-PA), Senator Richard Burr (R-NC) HR. 3423 -- Sponsored by Congressman Ander Crenshaw (FL), Chris Van Hollen (D-MD), Cathy McMorris Rogers (R-WA)
Created under Existing 529 Codes for Qualified Tuition Programs
Creates a new subsection (f) ABLE Account within Section 529 of the Internal Revenue Code
ABLE in the 112th Congress has been re-drafted to follow all the requirements and regulations of a traditional 529 qualified tuition program
Easy to open and available in any state
Same annual contributions apply (After $13,000 gift tax rules apply)
Same tax-free treatment of account applies (Income earned grows tax- free, withdrawals for qualified disability expenses are tax-free)
Same reporting requirements apply as to a traditional 529
A beneficiary may have either an ABLE account or a traditional 529 qualified tuition program. (Multiple ABLE accounts or multiple 529 plans still allowed)
Rollovers allowed from an ABLE account to traditional 529 if beneficiary is no longer deemed disabled. (All other 529 rollovers apply to ABLE accounts)
Rollovers allowed to other family member’s ABLE account or their traditional 529
Qualified Disability Expenses:
Education- including tuition for preschool thru post-secondary education, books, supplies, and educational materials related to such education, tutors, and special education 6 services
Housing- Expenses for a primary residence, including rent, purchase of a primary residence or an interest in a primary residence, mortgage payments, home improvements and modifications, maintenance and repairs, real property taxes, and utility charges
Transportation- Expenses for transportation, including the use of mass transit, the purchase or modification of vehicles, and moving expenses
Employment Support- Expenses related to obtaining and maintaining employment, including job-related training, assistive technology, and personal assistance supports
Health Prevention and Wellness: Expenses for health and wellness, including premiums for health insurance, mental health, medical, vision, and dental expenses, habilitation and rehabilitation services, durable medical equipment, therapy, respite care, long term services and supports, nutritional management, communication services and devices, adaptive equipment, assistive technology, and personal assistance
Assistive Technology and Personal Support- Expenses for assistive technology and personal support
Miscellaneous Expenses- Financial management and administrative services, legal fees, expenses for oversight, monitoring, or funeral and burial expenses
Bill History:
November 15, 2011: The ABLE Act is introduced in the Senate and House.
U.S. Senate for the ABLE bill during a Light It Up Blue ceremony at the Empire State Building. Senator Casey, the prime Senate sponsor of ABLE (S.1872), joined with Autism Speaks Co-founder Bob Wright at the event.
