A bipartisan groups of representatives and senators introduced a bill allowing the creation of tax-free savings accounts for various expenses for people with disabilities.
Similar to 529 savings plans for college savings, the accounts would allow families to place up to $100,000 in a separate account for education, housing, transportation and other expenses. The funds would supplement, but not replace, other public and private benefits.
“The ABLE Act is about giving people with intellectual and developmental disabilities the opportunity to achieve their dreams,” said Peter V. Berns, CEO of The Arc, in a news release. “Families are looking for ways to finance things like an apartment, or a ride to work, or additional educational opportunities after high school that don’t jeopardize other necessary services provided by federal programs. This bill creates a tool for families that could lead to a more independent and fulfilling life.”
The Achieving a Better Life Experience Act (ABLE) Act, has two sponsors in the Senate and 28 sponsors in the House of Representatives, ranging from liberal stalwart Rep. Barney Frank, D-Mass. to libertarian Rep. Ron Paul, R-Texas.
A similar version of the bill was introduced in 2009.