[vendtalk] US ABLE ACT passed - major positive implications for the disabled including those on SSI and Medicaid

[Mike Vandervoort]

The ABLE Act was passed and signed into law setting up special savings
accounts for those with disabilities or those with disabled dependants.  It
has major, positive impact on SSI and Medicaid recipients who will now be
able to save and have more than $2,000 in assets.  See the link and text
below.  

 

This is the most significant disability-oriented legislation passed in many
years.  No specific implementation details from the government were
currently available but should be in the near future as the IRS, Social
Security, Medicaid, and the financial industry  begin to communicate how to
set up such a savings account and the specific rules.  However, the basic
idea is that savings up to $100,000 do not affect SSI eligibility and no
limit for Medicaid eligibility.  However, withdrawals from the savings plan
must be for disability-related expenses, but that includes housing and a lot
more.

 

GovTrack's Bill Summary

H.R. 647 (113th): ABLE Act of 2014

The Achieving a Better Life Experience (ABLE) Act would ease the financial
burden for individuals with disabilities by creating tax-free accounts that
can be used to save for disability-related expenses. These accounts can be
created by individuals to support themselves or by families to support their
dependents.

 

The ABLE act was introduced by Ander Crenshaw [R-FL4] in the House and by
Robert Casey [D-PA] in the Senate. Together, the two bills have over 400
cosponsors. 

 

The bill would create tax-exempt, state based private savings accounts to
fund disability-related expenses to supplement benefits currently provided
by Social Security, Medicaid, employers, and private insurance. The account
shall be treated in the same way as a qualified tuition program, such as a
529. A 529 account allows families to save money for an individual's
education without being disqualified for certain aid programs and prevents
tax penalties on the money saved and any income earned from it.

Expenses would qualify as disability-related if they are for the benefit of
an individual with a disability and are related to the disability. They
include education; housing; transportation; employment support; health,
prevention, and wellness costs; assistive technology and personal support
services; and other expenses.

 

ABLE accounts will have no impact on Medicaid eligibility. Those receiving
Supplemental Security Income (SSI) from Social Security shall have those
payments suspended while maintaining excess resources in an ABLE account.

 

Source: https://www.govtrack.us/congress/bills/113/hr647#summary/oursummary