On Friday in Hartford, U.S. Senators Chris Murphy and Richard Blumenthal along with Congressmen John Larson and Elizabeth Esty celebrated the bipartisan passage of the ABLE Act. ABLE, which stands for Achieving a Better Life Experience, is aimed at easing the impact autism has on families across the country.
“The able act allows for families to put aside money, tax free, so it can grow and then be taken out to pay for expenses such as education or housing,” said Sen. Murphy.
It is a bill Shannon Knall, a Simsbury native and Autism Speaks Connecticut Advocacy Chair, has been waiting for. Knall’s son Jack is autistic and she knows firsthand how hard looking ahead can be.
“One of the issues I often talk about when I speak about autism is that we have little to no opportunity to plan for our future,” said Knall.
According to Sen. Blumenthal, the bill was one of the most popular in Congress and now Knall is thanking them for their support.
“They said that our families matter, our children are important, that there future is a priority,” said Knall.
The bill is now waiting for President Obama’s signature. He is expected to sign it before the end of the year.
Modeled after tax-free college savings accounts, the ABLE bill would amend the federal tax code to allow states to establish the program.
To qualify, a person would have to be diagnosed by age 26 with a disability that results in "marked and severe functional limitations"; those who are already receiving Social Security disability benefits would also qualify. Families would be able to set up tax-free accounts at financial institutions, depositing up to $14,000 annually to pay for long-term needs such as education, transportation and health care.
The contributions would be in after-tax dollars but earnings would grow tax-free.
The ABLE accounts would be able to accrue up to $100,000 in savings without the person losing eligibility for government aid such as Social Security; currently, the asset limit is $2,000. Medicaid coverage would continue no matter how much money is deposited in the accounts.
