The ABLE Age Adjustment Act Passed! What You Need to Know
History has been made! The ABLE Age Adjustment Act has passed, and it marks a huge victory for people with disabilities across the US.
This groundbreaking new legislation gives individuals with disabilities more control over their own finances by allowing them to make tax-free investments towards assistance while remaining eligible for Medicaid benefits.
What Is The Able Adjustment Act?
The ABLE Adjustment Act (AA) is a federal law that expands coverage of the Achieving a Better Life Experience (ABLE) program.
The ABLE program was created in 2014 to allow individuals with disabilities to save money without losing their eligibility for public benefits.
Under the AA, states can now offer tax credits to those who open and contribute funds to an existing or new account with their state’s ABLE program.
Who Benefits From The Able Adjustment Act?
The AA specifically helps people with disabilities build savings for themselves and their families. It also provides support for families who are caring for someone living with a disability by allowing them to access resources when needed.
What Are Some Of The Specifics Of The AA?
Eligible individuals can contribute up to $17,000 per year into an account without losing eligibility for public benefits such as Medicaid or Social Security Income (SSI).
States have flexibility in setting up tax credits and other incentives to encourage contributions into these accounts and can also set lower income limits than are required under current law.
California has taken great strides to improve the financial security of individuals with disabilities through what’s known as CalABLE accounts.
Over $80 million dollars have been saved and invested since 2018, granting disabled people greater freedom and increasing their quality of life far beyond what had previously been permitted by means-tested benefits programs such as Medicaid or Supplemental Security Income.
How Will This Affect People Nationwide?
The passage of this act has been met with widespread praise from those in both public and private sectors.
How?
It provides much needed security for vulnerable populations while also allowing them greater flexibility when it comes to saving money and planning for retirement.
It helps reduce poverty levels among seniors and disabled individuals by providing them with an opportunity to save more money over time.
It encourages employers to hire employees with disabilities by offering tax incentives related to hiring these workers.
It affords people with disabilities access to larger amounts of savings accounts within federally regulated limits reducing the reliance on government support programs.
A momentous passage of the ABLE Age Adjustment Act marks a new era for Americans with disabilities.
One in which people are empowered to take control of their lives and act as agents of change.
This law recognizes that every individual deserves a fair chance to pursue their dreams and reach their full potential regardless of age.
Want to learn more? Contact our offices today!
DISCLAIMER: The content contained herein is for general informational purposes only. These materials do not constitute legal or other professional advice. We do not accept any responsibility for any loss that may arise from reliance on this information. No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.