On December 4, 2024, Congresswoman Cathy McMorris Rodgers (R-WA-05) introduced the bipartisan ABLE Tomorrow Act, a landmark bill designed to enhance and protect tax-advantaged 529A savings accounts for individuals with disabilities. Building on the foundation of the Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act of 2014, this new legislation empowers people with disabilities to save for essential expenses without jeopardizing access to public benefits such as Medicaid and Supplemental Security Income (SSI).
The ABLE Tomorrow Act includes several key provisions that could significantly improve the financial security and independence of individuals with disabilities:
- Permanency for Prior Enhancements: Ensuring that the ABLE to Work Act and ABLE Financial Planning Act become permanent, allowing employed beneficiaries to save additional income and enabling rollovers from 529A college savings plans to ABLE accounts.
- Elimination of Medicaid Clawback: Removing the Medicaid payback requirement so beneficiaries can fully use their ABLE account funds without fear of state recovery upon their passing.
- Safeguarding Social Security Benefits: Introducing alerts to inform account holders if their savings approach thresholds that could affect Social Security benefits, helping them manage their accounts proactively.
- Employer Contributions: Allowing employers to contribute to ABLE accounts instead of traditional defined contribution plans, fostering more inclusive workplace benefits.
- Educational Initiatives: Empowering the Social Security Administration and the Department of Veterans Affairs to educate families about ABLE accounts when discussing SSI or SSDI benefits.
Gene Boes, CEO of Northwest Center, praised the initiative, stating:
“ABLE accounts have been a game-changer for adults with disabilities, providing a vital pathway to save for future needs while maintaining access to critical care and services. At Northwest Center, we are proud to support the ABLE Tomorrow Act, which introduces common-sense provisions to strengthen this program and make it even more accessible. We extend our deepest gratitude to Rep. McMorris Rodgers for her leadership and commitment to empowering individuals with disabilities to build brighter, more secure futures.”
Northwest Center, a nonprofit dedicated to promoting the independence and inclusion of individuals with disabilities, recognizes the transformative impact of ABLE accounts. The organization proudly supports the ABLE Tomorrow Act as a vital next step in ensuring financial stability and opportunity for all.
The ABLE Tomorrow Act represents a critical opportunity to expand financial tools that empower individuals with disabilities to achieve greater autonomy and plan for a secure future. Northwest Center will continue to advocate for its passage and collaborate with policymakers to ensure its successful implementation.
Click here to learn more about the ABLE Tomorrow Act and its potential to transform lives.
Together, we can build a future where individuals of all abilities can thrive.
