Since 1963’s Presidential Proclamation, the month of May has been recognized as the month we…
The New York State Assembly and Senate recently passed Achieving a Better Life Experience (ABLE) legislation that will allow families the opportunity to set up tax-free 529A savings accounts for disability-related expenses. The legislation is currently awaiting Governor Andrew Cuomo’s approval.
The bill follows upon enactment by the federal government of the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014. ABLE accounts, which are modeled after college savings accounts, will allow people with disabilities and their families to save for expenses like medical and dental care, education, community based supports, employment training, assistive technology, housing, and transportation, and other expenses if related to their disability.
The legislation also contains Medicaid fraud protection against abuse and a Medicaid pay-back provision when the beneficiary passes away. It promises to eliminate barriers to work and saving by preventing dollars saved through ABLE accounts from counting against an individual’s eligibility for any federal benefits program.
Although federal law applies uniformly to all states, individual states may regulate ABLE accounts differently. Currently ABLE laws have been enacted in 20 states: Alabama, Arkansas, Colorado, Delaware, Florida, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Montana, Nebraska, Nevada, North Dakota, Tennessee, Utah, Vermont, Virginia, Washington, and West Virginia.
By Eric J. Einhart-Guest Blogger