Montgomery, AL- The Alabama House unanimously approved SB 226, ABLE legislation, to allow families the opportunity to set up tax-free 529A savings accounts for disability-related expenses. The Alabama Senate overwhelmingly approved the measure late last month with a 27-1 vote of approval and the legislation now heads to Governor Robert Bentley for his signature.
The Alabama legislation follows upon enactment by the federal government of the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014. The federal law allows ABLE account funds to be disregarded for means-tested federal programs such as SSI and Medicaid, which cap (usually at $2,000) the amount an individual with a disability may save.
“Passing ABLE legislation in Alabama would not have been possible without the leadership of Senator Dick Brewbaker and Representative Ken Johnson,” said Stuart Spielman, Senior Policy Advisor and Counsel at Autism Speaks. “Today is a huge step for Alabama families who are now one step closer to having an important tool to plan for the financial future of their loved ones with disabilities. We hope that that Governor Robert Bentley will promptly sign SB 226 and bring ABLE programs to Alabama.”
Alabama joins Arkansas, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and West Virginia in the growing list of states that have either passed or enacted ABLE legislation.