ABLE Act

Hi COI Friends/Fans,

Today, we wanted to draw your attention to an important issue that affects many people with disabilities. As many of you know, asset-building is a difficult task for many people with disabilities, and these individuals are much more likely to be living in poverty, or be “asset poor,” which is when one doesn’t have enough resources to meet his or her expenses if there is no outside income for a period of three months. For example, although it’s estimated that 20% of the population has a disability, nearly half of the people living below the poverty line (47%) have one. This huge disparity speaks to the barriers people with disabilities face when it comes to asset-building or financial security.

Although these statistics are upsetting, the good news is that something is being done about it. On February 26, 2009, the Achieving a Better Life Experience (ABLE) Act of 2009 was introduced in Congress. This legislation was sponsored by Senator Robert Casey (D-PA) and Representative Ander Crenshaw (R-FL), and is designed to allow people with disabilities build assets. That is, it would allow for tax-exempt federal savings accounts for people with disabilities (similar to a 529 college savings plan). Every SSI beneficiary would qualify for one account that has a contribution limit of $500,000, and contributions up to $2,000 per year per individual would be tax deductible. This would also apply to potential beneficiaries, so if individuals becomes disabled as adults, they aren’t forced into poverty before qualifying. The account wouldn’t affect any other federal assistance the individual may be receiving.

This plan is seen as an improvement over the Special Needs Trusts that are offered in many states. It’s not as paternalistic as special needs trusts, which assume that people with disabilities aren’t able to control their own money. In the ABLE Accounts, a beneficiary can be a trustee (along with family members, financial institutions, and other qualified third parties as needed), which empowers the individuals and allows them to decide how to spend their money.

Furthermore, the accounts can be used for a wide range of needs, which include (but aren’t limited to): education and education services, training and employment supports, personal assistance support, respite care, community support, clothing, assistive technology, home or vehicle modifications, out of pocket medical expenses, habilitation and rehab services, and funeral and burial expenses.

We’ll admit that the act isn’t perfect – the account needs to be set up through an attorney, which can be seen as a drawback. It may be difficult for low-income populations to have the money to set up the account in the first place. However, this act is an improvement over our current system.

Now for the bad news: the ABLE Act hasn’t passed yet, and we are going to need your help if we want to get it through this session of Congress. We ask that you write your local representative to show your support for this important piece of legislation. To send the letter with the help of AutismVotes (which makes the process incredibly simple, you just need to fill out a form), go to:
http://www.autismvotes.org/c.frKNI3PCImE/b.3978771/k.11F3/Take_Action_on_the_ABLE_Accounts_Act_of_2009/siteapps/advocacy/ActionItem.aspx

You may also find this site helpful to learn more about the act: http://www.opencongress.org/bill/111-h1205/show


As always, feel free to contact the COI office with any questions or comments you may have!