Senate Finance Proposal Includes ABLE Age Adjustment
The Enhancing American Retirement Now (EARN) Act, which cleared the Senate Finance Committee and heads to the full Senate for consideration, includes a proposal by Senator Bob Casey (D-PA) to modify the “eligible individual” definition for purposes of a qualified ABLE program. Under the proposal, an individual may be an eligible individual if entitled to benefits based on blindness or disability, and such blindness or disability occurred before the date on which the individual attains the age of 46 (the current age is 26). It is estimated that the change in age would allow over 6 million additional people with disabilities to save with ABLE accounts.
The Achieving a Better Life Experience (ABLE) Act was passed into law in 2014. It created tax-free savings accounts for individuals with disabilities to cover qualified disability-related expenses. Ascensus will continue to monitor developments and share details as available.