Empowering people with disabilities and their families to save for the future, while protecting eligibility for public benefits
The Stephen Beck, Jr. Achieving a Better Life Experience Act (ABLE Act) became law on December 19, 2014. The ABLE Act creates a new option for some people with disabilities and their families to save for the future, while protecting eligibility for public benefits.
ABLE plans can change the way individuals with disabilities and their families participate in the community, build financial wellness and plan for the future by empowering them to save and invest for the added expenses that come with having a disability without losing access to federal means-tested benefits.
ABLE accounts foster person-centered independence, build self-reliance, encourage employment and improve quality of life. Contributions to ABLE accounts can come from earnings, family, friends and other sources. Earnings on ABLE accounts are tax-deferred, and withdrawals are tax-free as long as they are used for qualified disability-related expenses.
In 2022, NAST created the ABLE Savings Plans Network to coordinate our efforts to promote increased awareness and use of ABLE accounts as well as to advocate for improvements to the use and administration of ABLE plans. Pennsylvania Treasurer Stacy Garrity leads ASPN as we work to build strategic partnerships with Congress, federal agencies and the disability community to promote the use of ABLE accounts.
46 States and Washington D.C.
offer ABLE savings and investment plans
Data current as of June 30, 2023.
NAST and ASPN thank Congress for passing the ABLE Age Adjustment Act (S. 331 and H.R. 1219) in 2022
The National Association of State Treasurers and it’s affiliated network, the ABLE Savings Plans Network, applaud the passage of the ABLE Age Adjustment Act as part of the Omnibus Spending Bill. Since 2015, NAST and other ABLE advocates have urged for the passage of this legislation with the help of Senator Bob Casey (PA) and Representative Tony Cardenas (CA-29). With 103 bipartisan co-sponsors in the House and 22 cosponsors in the Senate, we thank Sen. Casey and Rep. Cardenas for their hard work shepherding this life changing legislation in the 117th Congress.
“The original ABLE Act was the most significant legislation for people with disabilities since the passage of the Americans with Disabilities Act nearly thirty years ago,” said Fiona Ma, California State Treasurer, California ABLE Act Board Chair, and ABLE Savings Plan Network Executive Board Member. “Through savings in ABLE accounts, Californians with disabilities have purchased homes, paid for educational expenses, covered out-of-pocket medical costs, and so much more. With the passage of the ABLE Age Adjustment Act, its impact will be even greater by including millions of veterans and others who became disabled later in life in the opportunity to achieve financial equity.”
What is next?
NAST and ASPN calls on Congress to make the following policies a part of permanent legislation: ABLE to Work Contributions, Saver’s Credit for ABLE, and 529-to-ABLE rollovers. Currently, these provisions are part of temporary legislation that will sunset on January 1, 2026, removing key tax incentives and creating confusion for ABLE account owners. By making these policies permanent, Congress will continue to incentivize workplace savings and provide flexibility for families whose higher education plans have changed.
How you can help
As the State Treasurer, program administrator, or other interested advocate, NAST encourages you to contact your entire Congressional delegation asking them to support the legislation to remove the sunset of the ABLE provisions listed above. To assist, we are assembling a toolkit of information resources that will be avcailable on this webpage in the near future.
“Having an ABLE account now means financial security. I just put a down payment on an accessible vehicle with the money I saved in my ABLE account. I don’t know what I would do without ABLE.”
— Wendy Settles, Illinois, Young adult professional with Cerebral Palsy
ABLE Resolutions Adopted by NAST
Federal Regulation of ABLE Programs
IRS Notice of Final Regulations for ABLE Plans – October 2020
IRS Notice of Proposed Rulemaking: Contribution Limits Applicable to ABLE Accounts – October 10, 2019
US Department of Housing & Urban Development Guidance on the Treatment of ABLE Accounts in HUD-Assisted Programs – April 26, 2019
Internal Revenue Service Release 2018-139 – Guidance on ABLE Accounts and the Saver’s Tax Credit – June 15, 2018
Centers for Medicare & Medicaid Services Guidance: Implications of the ABLE Act for State Medicaid Programs – September 7, 2017
US Department of Agriculture Guidance: Treatment of ABLE accounts in Determining SNAP Eligibility – April 4, 2016
Guidance Under Section 529A: Qualified ABLE Programs – A Proposed Rule by the Internal Revenue Service – June 6, 2015
NAST ABLE Committee
ABLE Committee Report – STATE ABLE PROGRAMS: PROGRESS AND LEGISLATIVE NEEDS – July 1, 2019
ABLE Committee Letter to the IRS regarding adding Social Security Representative Payees (“Representative Payee”) to the list of those who can establish and administer an ABLE account – May 29, 2019
State ABLE Administrator Contact Information March 2, 2020
NAST ABLE Committee Letter to United States Senate – November 18, 2019
ABLE In The News
ABLE Accounts Give Disabled More Financial Freedom – April 27, 2022
What is an ABLE account? It’s a savings account for people with disabilities – October 27, 2021
Revisiting the ABLE Act – October 26, 2021
Congress can help Americans living with disabilities by passing the ABLE Age Adjustment Act – April 20, 2021 – OPED by NAST ABLE Committee Chairs
Rep. McMorris Rodgers on the ABLE Act: ‘It’s Personal’ – October 20, 2020
Can a disabled person have savings and qualify for Medicaid? – August 3, 2020
What Is an ABLE Account? – August 1, 2020
Help more vets, others save for medical expenses – July 21, 2020
An Introduction to ABLE Accounts – March 23, 2020
IAble wants more – Editorial celebrating 3rd Anniversary of IAble – February 27, 2020
Everything You Need to Know About ABLE Accounts – February 19, 2020
Celebrating and expanding upon five years of the ABLE Act – February 9, 2020
Five Practical Uses for an ABLE Account – January 24, 2020
How to build support system for adult children with disabilities – January 9, 2020
529 ABLE Accounts: Helping End Forced Poverty For Disabled Individuals – November 12, 2019
How to Plan for Retirement and Special-Needs Care – October 19, 2019
Recent Changes to ABLE Accounts and Why Your Client Might Want One – September 23, 2019
Top Ways to Plan for Your Special Needs Child’s Future – August 2019
There’s a game-changing way for people with disabilities to save – August 24, 2019
Expanding the ABLE Act will help those who need it most – March 29, 2019
Sen. Burr and Sen. Casey ABLE Op-Ed – August 11, 2018