The National Down Syndrome Society is thrilled that in December 2017 the ABLE to Work Act and the ABLE Financial Planning Act were signed into law.
The ABLE to Work Act will allow an ABLE account’s designated beneficiary to contribute an additional amount beyond the current limitation on contributions ($15,000 for 2018), up to the lesser of the Federal poverty line for a one-person household (currently $12,140); or the individual’s compensation for the taxable year. In addition, the legislation allows a designated beneficiary of an ABLE account to claim the saver’s credit (nonrefundable tax credit for eligible taxpayers for qualified retirement savings contributions) for contributions made to his or her ABLE account. As a result, the ABLE to Work Act will bring more people with disabilities out of poverty and incentivize them to work by permitting them to save their earnings in an ABLE account, and ultimately becoming less dependent on government supports.
The ABLE Financial Planning Act will allow ABLE beneficiaries to roll over regular 529 accounts to 529A (ABLE) accounts up to the annual maximum contribution. This new law will be particularly helpful for families who set up 529 accounts before receiving a child’s diagnosis, or for teenagers who incur life-changing events that render them unable to go to college and use their 529 funds for their original purpose.
NDSS also looks forward to working with Congress to pass the ABLE Age Adjustment Act in the near future. This legislation would increase from 26 to 46 the age of onset of disability to be eligible for an ABLE account. In addition to helping individuals that incur disabilities later in life, increasing the age limit would also increase participation in state ABLE programs, which would increase efficiencies and lower the administrative costs that are passed on to beneficiaries. To take action and ask your Representative to support the ABLE Age Adjustment Act, you can use this link.
Congratulations to the self-advocates, DS-Ambassadors, affiliate leaders and families across the country who educated their members of Congress on the need for the ABLE to Work Act. This was a collective effort and a significant accomplishment.
For more information about the ABLE to Work Act and The ABLE Financial Planning Act, click the link below.