Advocates Monday urged state lawmakers to pass legislation they say will make the disabled more financially independent.
House Bill 768, known as the ABLE Act, would allow tax-free savings accounts for people with disabilities to help them pay for critical expenses, such as housing and health costs.
“My goal is to be as much of a contributing member of society as possible,” said Jordan Hall, a disabled college student. “So with the ABLE Act you’re not only giving us the resources that we need to contribute to society, but you’re getting a return on your investment.”
People who receive federal disability benefits are limited to how much money they can have in their bank accounts. The current limit is $2,000. Advocates of the ABLE Act said the limit forces individuals with disabilities to spend extra money unnecessarily to ensure their account balance never goes over the limit out of fear of losing their benefits.
This limit prevents many from building assets, pursuing an education or purchasing property. HB 768 would allow people to put excess money into a tax-free account.
Rep. Lee Hawkins, R-Gainesville, the sponsor of the bill, said qualified qualified withdrawals from ABLE accounts would be “non-taxable, but non-qualified withdrawals are taxable with a 10 percent penalty.”
"The basic part of the ABLE Act is people are allowed to save money and protect their benefits, which they cannot do now," said Kathy Keeley, executive director of All About Developmental Disabilities, the leader of the Georgia Able Coalition. Other member organizations of the coalition include the Georgia Council for Developmental Disabilities and Autism Speaks Georgia, among 29 other groups.
Under the ABLE Act, an individual would be limited to a single ABLE account. Individuals with disabilities and their families could contribute up to $14,000 annually to each account.
President Barack Obama signed the federal ABLE Act into law in December of 2014, but states have to pass their own legislation to allow the creation of the accounts. So far, 35 states have adopted the act.
“We have a lot of support. The Republican Senate Caucus has made it a priority. We have 52 signers right now on the bill, so we take that as all very positive signs,” said Keeley.
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