Expanded bill passes Senate
U.S. Sen. Bob Casey, D-PA, announced on Thursday, Dec. 22, 2022, that his extension of his 2014 ABLE Act has passed the U.S. Senate, as it was included in the Fiscal Year 2023 spending bill.
The ABLE Act allows those with disabilities to accrue more than the previous limit of $2,000 in a savings account without losing their government benefits, if their disability was acquired before age 26.
The ABLE Age Adjustment Act allows those with disabilities to open an ABLE account and save for the future if they acquired their disability between the ages of 26 and 46.
A news release from Casey’s office said the ABLE Age Adjustment Act will allow 6.2 million additional people with disabilities, including more than one million veterans, the opportunity to open ABLE accounts.
“For years, millions of people with disabilities in this country were barred from saving for the future, which meant many people couldn’t save for a home, purchase needed assistive technology, or save for an accessible car,” Casey said.
He said the ABLE Act of 2014 knocked down that barrier for many people with disabilities.
“My ABLE Adjustment Act builds on that success and expands access to these life-changing ABLE savings accounts for millions more Americans,” Casey said. “I am proud that this bill has passed the Senate and is on its way to making progress and advancing equity for people with disabilities.”
The news release said almost 120,00 Americans are ABLE account holders, with savings of more than $1.1 billion and an average account size of nearly $9,300.
Before the passage of ABLE, individuals with disabilities could not accumulate more than $2,000 in assets — such as in a savings or retirement account — without risking loss of their government benefits.
Today, individuals can open an ABLE account in 43 states and the District of Columbia and contribute up to $15,000 per year and have up to $100,000 in their accounts without risking the loss of their government benefits.
ABLE savings can be used for disability-related expenses, including home modifications, education, transportation and assistive technology.
