Rep. Capito: ABLE Act Helps Families

Press Release

U.S. Representative Shelley Moore Capito (R-W.Va.) voted yes today on legislation to help Americans with disabilities better plan for their financial futures.

The Achieving a Better Life Experience (ABLE) Act, H.R. 647, would make tax-free savings accounts available to persons with disabilities to help cover qualified expenses, including education, housing, transportation and retirement. The accounts would be available to persons disabled before age 26. Rep. Capito is a cosponsor of this bill, which passed the House 404-17.

"Individuals with disabilities face uncertain financial futures as they try to navigate IRS rules, federal benefit programs and personal savings accounts. The ABLE Act will bring certainty and allow them to save for their future expenses without jeopardizing their access to much-needed programs. By allowing individuals with disabilities to access programs already available to many families, we can encourage Americans to save more and better plan for their financial needs," Rep. Capito said.

The ABLE Act would create supplemental, state-based private savings accounts that would be treated like qualified tuition programs such as a 529 account. The new account would allow individuals with disabilities to save for disability-related expenses while preventing tax penalties on money saved. The ABLE Act would also allow individuals with disabilities to save without being disqualified from Medicaid.

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