If passed, The ABLE (Achieving a Better Life Experience) Act will allow individuals with disabilities (or their parents) to create a special savings account — an “ABLE account” — that can accrue tax-free. The money in this account can be used for just about anything related to your child’s disability: education, medical and dental care, community-based support, employment training, assistive training, housing and transportation.
Currently, families can’t have more than $2,000 in combined assets to be eligible for federal benefits. This new national legislation will mean that money in the ABLE account — similar to money in an IRA or 529 college savings plan — will not be treated as income or assets when determining eligibility for any federal program.
Senators Robert Casey (D-Penn.), Orin Hatch (R-Utah) and Christopher Dodd (D-Conn.) introduced the legislation, HR 1205. The bill is currently in committee, the first step of the legislative process; Texas representatives will weigh in when the bill reaches the House and Senate later this year.