An individual runs for public office hoping to make a difference in people’s lives via public policy. Over the years, one of the biggest fears expressed to me by parents of children with severe disabilities has been, “What will happen to our child when we die?”
Hopefully, the Georgia Achieving a Better Life Experience (ABLE) legislation, gives all parties a little more security.
In December 2014, the ABLE Act became federal law. The House of Representatives passed it 404-17, and the Senate passed it 76-16. This law allows a state to set up a program for its citizens to establish ABLE accounts.
ABLE allows individuals with disabilities to establish tax-free savings accounts. Total, annual, after-tax contributions from family, friends or the person with the disability are capped at the annual federal gift tax limit (currently $14,000). Accounts may not exceed the 529 plan limit (in Georgia, $235,000 for college savings). Once an account exceeds $100,000, receipt of Social Security income benefits are suspended, but Medicaid eligibility remains intact.
Eligibility is limited to individuals with significant disabilities, with the onset of the disability occurring before 26 years of age. If a person is older than 26, he or she must have documentation that the onset of the disability occurred before the age of 26. If an individual meets the criteria and is also receiving benefits under supplemental Social Security income or Social Security disability insurance, that individual is automatically eligible to establish an ABLE account.
An ABLE account can fund essential expenses for individuals including medical and dental care, education, community-based supports, employment training, assistive technology, housing and transportation.
It eliminates barriers to work and savings by preventing dollars saved through ABLE accounts from counting against an individual’s eligibility for federal benefits.
In Georgia, it is estimated that close to 300,000 individuals will be eligible. The National Disability Institute estimates 67,000 accounts will initially be established in this state. Earnings from these accounts are tax-free.
The bill will begin in the Georgia House of Representatives, since it has tax implications. State Reps. Scot Turner, R-Holly Springs, and Lee Hawkins, R-Gainesville, will introduce separate versions, and I hope to carry whatever bill emerges from the House.
Please contact your representative and senator to encourage their support of this important legislation. Hopefully, we will bring a late Merry Christmas present to the disability community.
State Sen. Fran Millar, R-Atlanta, represents District 40.
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