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
Key Legislation
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 its 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 pas the ENABLE ACT and make the following policies permanent: 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 available 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, Illinois, Young adult professional with Cerebral Palsy