ABLE Act

Overview

The Stephen Beck Jr. Achieving a Better Life Experience (ABLE) Act (Public Law 113-295) was signed into law on December 19, 2014. The ABLE Act amends the Internal Revenue Service Code of 1986 to create tax-free savings accounts for individuals with disabilities. The funds in the ABLE account do not count toward the $2,000 cap on assets that is required to remain eligible for critical government supports. An ABLE account may fund a variety of essential expenses for individuals with disabilities including medical and dental care, education, community-based supports, employment training, assistive technology, housing and transportation. The federal ABLE Act authorizes the states to develop their own ABLE programs, and many states have moved quickly to pass ABLE laws and are in various stages of developing their ABLE programs.