|Posted:||April 6, 2015 04:39 PM|
|From:||Senator Lisa Baker|
|To:||All Senate members|
|Subject:||Achieving a Better Life Experience (ABLE) Tax Free Savings Account for Disabled Individuals|
|Please join me in co-sponsoring legislation providing for a state Treasury administered 529-ABLE Plan account to encourage families to set aside funds for future costs related to the disability of the beneficiary, much like our PA 529 Guaranteed Savings Plan.
Federal legislation was signed into law in December 2014 amending Section 529 of the Internal Revenue Service Code to allow for the creation of a tax-free savings account for individuals with disabilities. The federal government must now adopt regulations to set the parameters and the states must pass enabling legislation before individual accounts can be established.
Current law makes savings for disability-related expenses difficult, as individuals and families can face the loss of federal benefits if savings exceed certain limits. ABLE accounts would provide another tool for families to plan for the lifetime support needs of individuals with disabilities.
Qualified disability expenses would include funds needed for education, housing, transportation, employment support, health prevention and wellness, assistive technology, financial management, legal fees and other miscellaneous expenses. These funds would supplement, but not replace, benefits provided through private insurance, Medicaid, SSI, the beneficiary’s employment, and other sources.
Thank you for your consideration.
Introduced as SB879