Washington, DC- Today, U.S. Senator Bob Casey (D-PA) chaired a hearing of the Senate Finance Committee’s Subcommittee on Taxation and IRS Oversight to push for passage of the bipartisan Achieving a Better Life Experience Act (ABLE) Act. The hearing featured Representative Cathy McMorris Rodgers, a member of the House GOP Leadership, and Sara Wolff, a Northeastern Pennsylvania native, who is a leading voice for those with disabilities and the ABLE Act. The hearing comes as momentum builds for a September passage. The bill now has the support of 75 Senators including Majority Leader Reid and Minority Leader McConnell. In the House, the ABLE Act has over 360 cosponsors. The legislation allows individuals with disabilities and their families to save for their long term care through 529-style, tax-advantaged savings accounts.
“Today’s hearing further underscores the broad bipartisan support for the ABLE Act and the substantial impact that it will have for families who have a child with a disability,” Senator Casey said. “Passing this legislation will allow families who have a child with a disability to save for their long-term care in 529-style savings account. This is a model that has proven successful for college savings and will dramatically change the lives for many of these vulnerable children.”
The legislation would amend Section 529 of the Internal Revenue Service Code to allow use of tax-free savings accounts for individuals with disabilities. The bill, first introduced in 2006, would ease financial strains faced by individuals with disabilities by making tax-free savings accounts available to cover qualified expenses such as education, housing, medical, and transportation. The bill would supplement, but not supplant, benefits provided through private insurance, the Medicaid program, the beneficiary’s employment, and other sources.