Montgomery, AL- Governor Robert Bentley has signed into law SB 226, legislation that allows families to set up tax-free 529A savings accounts for disability-related expenses.
The Alabama ABLE law 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. Alabama’s ABLE legislation was championed by Senator Dick Brewbaker and Representative Ken Johnson.
“ABLE’s enactment in Alabama would not have been possible without our supporters in the legislature and engaged grassroots advocates across the state,” said Stuart Spielman, Senior Policy Advisor and Counsel at Autism Speaks. “We are grateful to Governor Bentley for making this important financial tool a reality for Alabama families affected by autism.”
ABLE laws have been enacted in 20 states: Alabama, Arkansas, Colorado, Delaware, Florida, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Montana, Nebraska, Nevada, North Dakota, Tennessee, Utah, Vermont, Virginia, Washington, and West Virginia. ABLE bills have passed the legislatures in six other states: Connecticut, Hawaii, Illinois, Iowa, Missouri and Texas.