The ABLE Act of 2013 (Achieving a Better Life Experience) is a new piece of legislation making its way through Washington D.C. that would affect many of our participants. This bill would allow individuals with disabilities to build up a tax-free bank account to pay for “disability related expenses” which is explained more below. The amount of money in an ABLE account would not go towards qualifying for federal programs such as Medicaid and other programs that take money into consideration for qualification. However, Supplemental Security Income (SSI) payments can be suspended to any individual who has extra resources in an ABLE account. This would most likely take effect if the individual holds more than $100,000 in the account. The gift tax rule of $13,000 would be in effect as well. This means that one person can’t give more than $13,000/year without being taxed for it. Once the individual with a disability passes away, or is no longer deemed to have a disability, the money in the ABLE account will be taken to pay for remaining Medicaid expenses. If there is any leftover money after that, it will most likely be deemed an asset. That would first need to be decided by the Secretary of the Treasury. As of now, the bill is sitting in the House of Representatives, and is waiting to be amended. If the House of Representatives pass the bill, it will have to pass through the Senate and be signed by the President to become law. After talking to Kyle Roskam from the US Capitol, he stated that the bill should move to the President’s desk quickly, after the House of Representatives decides what to do about the lost revenue from lost taxes and puts it to a vote. He stated that it is supported by about an 85% majority in the House of Representatives, which is definitely a good sign for the bill.
Disability Related Expenses that the ABLE Act Can Be Used For
Education – This can be used from pre-school to college, including books, supplies, tutors, and special education.
Housing – Expenses for primary residence. This includes rent, purchase of a residence, mortgage, and improvements to the home, maintenance, property tax, and utility charges.
Transportation – Use of mass transit, buying or fixing a vehicle, or for moving purposes
Employment Support – Charges for finding and keeping employment, job training, assistive technology, and personal assistance support
Health Prevention and Wellness – Premiums for health insurance, mental health, medical, vision and dental, habilitation/rehabilitation, reliable medical equipment, therapy, respite care, long term services and support, nutritional management, communication services, adaptive equipment, personal assistance, and assistive technology
Other Approved Miscellaneous Expenses – Services for managing finances, legal fees, and funeral and burial expenses
Sources Referenced and Attached
AAID, The Arc, AUCD, NACDD, SABE, UCP. (2013). Achieving a Better Life Experience (ABLE) Act Fact Sheet. 2013 Disability Policy Seminar.
Congressman Ander Crenshaw. (2007). The ABLE Act – The 113th Congress.
Roskam, K. (2014, September 16). Telephone interview.
Attachments With More Information
