Bi-Partisan Bill to Create Tax-Free Savings for Californians with Disabilities
SACRAMENTO – This weekend Governor Brown signed two bills implementing the California ABLE Act. Starting January 1st, 2016, individuals with disabilities and their families will be able to save money tax free, and without fear of losing eligibility to a variety of public assistance programs.
Assemblymember Jacqui Irwin (D-Thousand Oaks) and Senator Fran Pavley (D-Agoura Hills) introduced Assembly Bill 449 and Senate Bill 324 to help people with disabilities save for the future. Together the bills create the Achieving a Better Life Experience (ABLE) Act, which allows people with disabilities to open special accounts where they can save without risking eligibility for Social Security and other government programs. ABLE accounts are similar to the widely used 529 education savings plan but would be used for disability related expenses.
“AB 449 and SB 324 are a combined effort to implement the ABLE Act in California to help people with disabilities find a path to employment, greater independence and dignity,” said Assemblymember Irwin (D-Thousand Oaks). “The ABLE Act will give families and individuals a tool to save money to support the needs of people with disabilities and I applaud Governor Brown for supporting the measure.”
According to the National Down Syndrome Society, a person diagnosed with a disability cannot have assets worth more than $2,000 or earn more than $680 per month without forfeiting eligibility for government programs like Medicaid and SSI. This can have the effect of discouraging people with disabilities from working and saving. The ABLE Act will allow people with disabilities to earn money and save without losing access to essential safety net programs such as Medi-Cal and Social Security. “These accounts will be able to fund a variety of needed expenses, such as medical and dental care, housing and education,” said Senator Pavley.
“When my daughter was born with Down syndrome, the nurse told of the amazing potential of people like my daughter, but also of limits our government puts on their ability to contribute,” said Brad Pitzele, a proponent of the California ABLE Act. “I am excited to see our representatives in Sacramento give my daughter – and all Californians with disabilities – the opportunity to achieve and contribute to their full potential. There is great self-worth and dignity that comes from demonstrating one's capabilities and achieving for one's self.”
Assemblymember Irwin’s website: http://asmdc.org/irwin