President Obama signed the Achieving a Better Life Experience (ABLE) Act into law in 2014. The ABLE Act created a new type of savings account designed to help people with disabilities save money without risking their eligibility for government benefits. However, before people can open accounts, the ABLE program has to be set up at the state level. Over half of US states have already done so.
The Indiana General Assembly has introduced Senate Bill 11, which would create ABLE accounts in Indiana. Like the federal law, Indiana’s ABLE accounts would allow people with disabilities to save for “qualified disability expenses”, including:
People would be able to contribute to the accounts from pre-tax dollars, with a maximum annual contribution of $14,000. The total account balance would be capped at $100,000, and would not be counted in the $2,000 personal asset tests for public assistance benefits.
In addition to creating the accounts in Indiana, the bill would establish the ABLE Authority and Board to run the ABLE program in Indiana. The board would consist of the treasurer of state, the secretary of Family and Social Services, the budget director, and five members appointed by the governor.
To read the full version of the bill, visit http://iga.in.gov/legislative/2016/bills/senate/11 and click “latest version”. If this bill is of interest to you, you may wish to contact your representatives at the Indiana General Assembly with your opinion.
Act Team Coordinator
The Fifth Freedom Network