U.S. Reps. Ander Crenshaw (R-FL) and Cathy McMorris Rogers (R-WA) and U.S. Sen. Richard Burr (R-NC) introduced bicameral, bipartisan legislation on Thursday that would help disabled individuals prepare for the future.
The legislation builds on the Achieving a Better Life Experience (ABLE) Act that lawmakers passed in 2014 to help families prepare for the long-term care of loved ones with disabilities through tax-free savings accounts.
The ABLE to Work Act, H.R. 4795, introduced on Thursday would allow disabled individuals to save a portion of their wages in an ABLE account without the risk of losing their benefits.
“When the ABLE Act became law-of-the-land on Dec. 19, 2014, a brighter future opened to millions of Americans living with disabilities,” Crenshaw, the chairman of the House Appropriations Subcommittee on Financial Services and General Government, said. “Today, people with disabilities can use tax-free ABLE accounts to plan for future expenses without risking the loss of critical federal benefits. Now is the time to build on that historic achievement with additional, commonsense tax code revisions that promote self-sufficiency for an even greater number of individuals with disabilities. That’s independence worth fighting for: No one who is willing to work, save, and responsibly plan for their future should be held back by the U.S. tax code. Period.”
Under the bill, rollovers to and from 529 college savings plans would be allowed, while the eligibility age limit would be raised from 26 to 46.
“As the mother of a young son with Down Syndrome, I know the challenges families face preparing for their loved one’s future,” McMorris Rodgers said. “With this initiative, we are building on the success of the Americans with Disabilities Act and the ABLE Act to enable those with disabilities to seek meaningful and competitive employment opportunities without the fear of losing their benefits. Let’s help them achieve their dreams of being independent and contributing to society.”
Since passage of the ABLE Act in 2014, 34 states have implemented ABLE programs and legislation is pending in additional states.
“The ability to support yourself through work is an essential element of the American dream,” Burr, a cosponsor of the Senate bill, S. 2702, said. “The ABLE to Work Act gives disabled Americans and their families better options to plan for the future. Many individuals with disabilities are able to work, but our current one-size-fits all system punishes those who do by making them ineligible for benefits. Work is about more than financial support; it’s about participating in society and building a sense of purpose. It is wrong to exclude the most vulnerable members of our community from the benefits of work. I am also proud to join with my colleagues to introduce legislation to improve the ABLE Act by allowing rollovers from 529 college savings plans as well as allowing individuals who become disabled after turning 26 to open and save in an ABLE account.”
U.S. Sen. Bob Casey (D-PA) and U.S. Reps. Chris Van Hollen (D-MD) and Pete Sessions (R-TX) are also cosponsors the ABLE to Work Act.