by Laura Hippert

The ABLE (Achieving a Better Life Experience) Act is making its way through congress in an attempt to overturn an outdated bill that puts harsh income and savings limitations on people with disabilities.

The current law limits people with disabilities from saving more than $2000 per year. There is also a per month earning cap set at $700. If earnings or accounts exceed this cap, there is a risk of losing eligibility for benefits, including Social Security and Medicaid. The ABLE Act, would amend the antiquated tax law by allowing for people with disabilities to save up to $100,000 to cover expenses such as transportation, housing, and education. There is also no risk of losing Medicaid coverage, no matter how much is deposited into the accounts.

Modeled after the 529 college savings plans, individuals would be able to open ABLE accounts at any bank across the country and the interest earned on funds deposited in the accounts would be tax-free.

Sara Wolff, a key advocate of the ABLE Act, is fighting for it’s passage based on personal experience with the current law. After losing her mother, Sara became financially independent, working two jobs in order to support herself. Although she has two jobs, she is not able to maximize her earning potential because her employers have to strictly limit her work hours in order to keep her income at around $700 per month.

Sara states that, “just because I have Down Syndrome, that shouldn’t hold me back from achieving my full potential in life. I can work a full-time job, be a productive member of society, and pay taxes- but because of these outdated laws placed on individuals with disabilities, we hold people like me back in life” Change.Org. By passing the ABLE Act, Sara and countless others would be given a chance to ultimately have better financial security, and more freedom to make savings decisions based upon their own best interests.

The ABLE Act is said to be the most popular piece of legislation in congress right now. Bob Casey, a Democrat representative from Pennsylvania and the legislations lead sponsor states that, “no other bill in Congress has this level of bipartisan, bicameral support” (read more here).

Proponents of the bill predict that the ABLE Act will be fast-tracked through Congress and land on the Presidents desk by the end of September.

If you want to be a part of the passing of the ABLE Act, visit the petition here.

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