The ABLE Act, Which The Senators Helped Champion Through Congress, Establishes New Tax-Advantaged Savings Accounts To Allow People With Disabilities And Their Families To Save For Their Futures And Help Cover Important Expenses Like Education, Housing And Wellness / Senators Sent Letter Urging U.S. Treasury Department To Implement Regulations For The ABLE Act So That States Have The Guidance They Need To Launch ABLE Programs And Families Can Realize The Law’s Benefits
Washington, DC – U.S. Senators Bob Casey (D-PA), Amy Klobuchar (D-MN) and Richard Burr (R-NC) are urging the U.S. Department of Treasury to give states guidance on the implementation of the Achieving a Better Life Experience (ABLE) Act. The ABLE Act, which the senators helped champion through Congress, establishes new tax-advantaged savings accounts to allow people with disabilities and their families to save for their futures and help cover important expenses like education, housing, and wellness.
Under the ABLE Act, each state must pass legislation and create regulations to set up an ABLE program before residents can participate. Since the bill was signed into law in December, Minnesota and 24 other states have passed legislation to establish ABLE programs. The senators sent a letter urging the U.S. Treasury Department to provide timely guidance to help states move forward with the launch of ABLE programs so that families will be able to realize the law’s benefits.
“This historic legislation gives people with disabilities and their families the opportunity to plan and save for the future through the creation of new tax-advantaged savings accounts,” the senators wrote. “The money saved can help cover expenses—including those for education, housing and wellness—without jeopardizing access to other support they count on. We worked with a broad bipartisan coalition to get this bill passed and are hopeful families can realize its benefits soon. We urge the Treasury Department to develop its rules without delay so that states can have clear guidance moving forward to launch ABLE programs.”
The full text of the senators’ letter is available below:
Dear Secretary Lew:
On December 19, 2014, the Achieving a Better Life Experience Act, or ABLE Act, was signed into law. This historic legislation gives people with disabilities or their families the opportunity to plan and save for the future through the creation of new tax-advantaged savings accounts. The money saved can help cover expenses—including those for education, housing and wellness—without jeopardizing access to other support they count on. We worked with a broad bipartisan coalition to get this bill passed and are hopeful families can realize its benefits soon.
States across the nation have been quick to take steps toward implementing the ABLE Act. Since January, in fact, twenty-five states have passed ABLE implementation legislation. In Pennsylvania and North Carolina, bipartisan legislation has been introduced. In Minnesota, Governor Mark Dayton recently signed into law a bill to establish an ABLE Act program in the state.
We understand the Department of the Treasury is working on implementing regulations for the ABLE Act, which includes developing the specific rules under which an ABLE account may be opened, as well as the scope of eligible expenses. The law provides six months for the completion of these rules. We urge the Treasury Department to develop its rules without delay so that states can have clear guidance moving forward to launch ABLE programs.
Thank you for your attention to this important issue. By working together, we will improve the lives of people living with a disability and help provide peace of mind to their families in our states and across the nation.
Sincerely,
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