The effort to add the ABLE [Achieving a Better Life Experience] Act to the Middle Class Tax Relief Act, legislation that was considered during these last few weeks of the year, was not successful for reasons unrelated to the merits of the proposal. As a result, the ABLE Act was not included in the final tax bill that was passed by both the House and Senate this week. This outcome is disappointing; however the important efforts of advocates have made a difference. The bill was moved to a point in the process in which key members of the congressional leadership and the president’s administration understood that there is tremendous support among advocates across the country for the ABLE Act, which would give individuals with disabilities and their families the ability to save for their child’s future.
The Autism Society and a group of 40 national disability organizations that are part of the effort to enact the ABLE legislation will act early and aggressively in the next Congressional session to urge Congress to take up the legislation again. Thank you for your support.
The ABLE Act would enable families to establish a savings account for specified education, medical and community-based services, including housing, transportation, employment training and supports for their child without disqualifying that child from receipt of funds from entitlement programs which are vital in ensuring their quality of life. ... This legislation would greatly benefit many people affected by autism. The Autism Society recognizes the importance of lifespan planning and sees the Disability Savings Accounts that this bill would create as one measure to help families with adults on the spectrum. |
Crenshaw sponsored an earlier version of the measure in the 110th Congress. In July, he wrote in The Washington Times:
The average cost of raising a child with a significant medical disability is more than $1 million over the course of the child's lifetime. Continuing education, transportation, housing and medical care make up some of the predictable costs on that staggering bill.
ABLE accounts would relieve some of that burden by allowing parents with disabled children or family members of disabled individuals to invest through a tax-deferred savings account that could be drawn from for these future expenses. No longer would parents have to stand aside and watch as others use IRS-sanctioned tools like 529 education savings accounts to lay the groundwork for a brighter future. They would be able to do so for their children as well.
Creating an ABLE account would be as simple as opening an account at the local bank. Anyone currently receiving Supplemental Security Income (SSI) benefits would be eligible, and qualified expenses would include education and transportation expenses, medical and dental care, and employment and training support.
Anyone would be allowed to contribute to an ABLE account, and rollovers would be allowed without penalty; however, contributions to these accounts would be capped at $500,000. Under the proposal, the principal in the account would accrue interest-tax-free during the life of the beneficiary. When distributions were made to the beneficiary for qualified expenses, the distributions would be excluded from the gross income of the beneficiary.
